Panner, Inc owns 30% of Watkins & applies the equity method. During the current year Panner buys
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Panner, Inc owns 30% of Watkins & applies the equity method. During the current year Panner buys inventory costing 54,000.000 and sells it to Watkins for 90,000.0. At the end of the year Watkins still holds 20,000.00 of merchandise. What amount of unrelaized gross profit must Panner defer in reporting this investment using the equity method?
a. $2,400
b. $4,800
c. $8,000
d. $10,800
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Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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