Business, 09.07.2020 01:01, needsdarkness6016

Scroll Inc., a wholly owned subsidiary of Pirn Inc., began operations on January 1, 20X1. The following information is from the condensed 20X1 income statements of Pirn and Scroll: Pirm
Sales to Scroll $100,000
Sales to others $400,000
Cost of goods sold: $500,000
Acquired from Pirn -
Acquired from others $350,000
Gross profit $150,000
Depreciation $40,000
Other expenses $60,000
Income from operations $50,000
Gain on sale of equipment to Scroll $12,000
Income before income taxes: $38,000
Scroll
Sales to Scroll -
Sales to others $300,000
Cost of goods sold: $300,000
Acquired from Pirn $80,000
Acquired from others $190,000
Gross profit $30,000
Depreciation $10,000
Other expenses $15,000
Income from operations $5,000
Gain on sale of equipment to Scroll -
Income before income taxes $5,000
Additional Information
Sales by Pirn to Scroll are made on the same terms as those made to third parties.
Equipment purchased by Scroll from Pirn for $36,000 on January 1, Year 4, is depreciated using the straight-line method over 4 years.
In Pirn’s December 31, Year 4, consolidating worksheet, how much intraentity profit should be eliminated from Scroll’s inventory?

Answers: 3

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Scroll Inc., a wholly owned subsidiary of Pirn Inc., began operations on January 1, 20X1. The follow...