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Business, 07.03.2020 06:29 gigioschoch

Prince Co. owned 80% of Kile Corp.'s common stock. During October 2018, Kile sold merchandise to Prince for $140,000. At December 31, 2018, 50% of this merchandise remained in Prince's inventory. For 2018, gross profit percentages were 30% of sales for Prince and 40% of sales for Kile. The amount of intra-entity gross profit remaining in ending inventory at December 31, 2018 that should be eliminated in the consolidation process is:
A. $28,000.B. $42,000.C. $56,000.D. $21,000.E. $22,400.

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Prince Co. owned 80% of Kile Corp.'s common stock. During October 2018, Kile sold merchandise to Pri...
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