Yukon co. acquired 75% percent of the voting common stock of ontario corp. on january 1, 2018. during the year, yukon made sales of inventory to ontario. the inventory cost yukon $260,000 and was sold to ontario for $390,000. ontario held $60,000 of the goods in its inventory at the end of the year. the amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2018, is:
a) ο $15,000.
b) ο $20,000.
c) ο $32,500.
d) ο $30,000.
e) ο $110,000.
Answers: 2
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Yukon co. acquired 75% percent of the voting common stock of ontario corp. on january 1, 2018. durin...
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