Pcompany owns 80% of the outstanding stock of s company. during 2014, s company reported net income of

$525,000 and declared no dividends. at the end of the year, s company’s inventory included $487,500 in unrealized

profit on purchases from p company. intercompany sales for 2014 totaled $2,700,000.

required:

prepare in general journal form all consolidated financial statement workpaper entries necessary at the end of the

year to eliminate the effects of the 2014 intercompany sales.

The Journal entries are as follows:

(a) Sales A/c                       Dr. $2,700,000  

To purchase / cost of sales                          $2,700,000

[to eliminate inter-company sales]

(b) Inventory (Cost of goods sold) A/c   Dr.  $487,500

To Inventory - Balance sheet                                           $487,500

[to eliminate unrealized profit)in ending inventory]

im going to come back to you?

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported