Hawk Company sold inventory to United Ltd., an English subsidiary. The goods cost Hawk $8,000 and were

Question:

Hawk Company sold inventory to United Ltd., an English subsidiary. The goods cost Hawk $8,000 and were sold to United for $12,000 on November 27, payable in British pounds. The goods are still on hand at the end of the year on December 31. The British pound (£) is the functional currency of the English subsidiary. The exchange rates follow:
€ $
November 27 ....... 1 = 1.60
December 31...... 1 = 1.70

Required
a. At what dollar amount is the shown in the trial balance of the consolidated worksheet?
b. What amount is eliminated for the unrealized intercompany gross profit, and at what amount is the inventory shown on the consolidated balance sheet?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...