Diller owns 80% of Lake Company common stock. During October - 12488

Solution Posted by
yousafbhutta

yousafbhutta

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Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Mon 16 Jul, 2012
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Request Description

Diller owns 80% of Lake Company common stock. During October 20X7, Lake sold merchandise to Diller for $300,000. On December 31, 20X7, one-half of this merchandise remained in Diller's inventory. For 20X7, gross profit percentages were 30% for Diller and 40% for Lake. The amount of unrealized profit in the ending inventory on December 31, 20X7 that should be eliminated in consolidation is
$80,000
$60,000
$32,000
$30,000
$0

 

Solution Description

Diller owns 80% of Lake Company common stock. During October 20X7, Lake sold merchandise to Diller for $300,000. On December 31, 20X7, on