Luffman Inc. owns 30% of Bruce Inc. and appropriately applies - 12313

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Sun 08 Jul, 2012
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Request Description

4. Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the merchandise had been sold by Luffman to other customers. What amount of unrealized intercompany profit must be deferred by Luffman?

(Points : 1)
        $0
        $8,400
        $28,000
        $52,000
        $80,000

Solution Description

4. Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory