Tower Inc. owns 30% of Yale Co. and applies the equity method. - 12322

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yousafbhutta

yousafbhutta

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Request Description

Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $120,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of intra-entity inventory profit must be deferred by Tower?  (Points : 2)
        $6,480
        $3,240
        $10,800
        $16,200
        $6,610

Solution Description

13. Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $120,000. At year-end, only $24,000 of merchandise w