Assume that Booming bought products from Slamming for 560,000. Slamming noted a profit margin of...
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Assume that Booming bought products from Slamming for € 560,000. Slamming noted a profit margin of 40% (they usually upgrade their products with 40% of the cost of goods). Booming haven't sold all of these products at the end of 2020. 10% of the intra entity purchases still remain in inventory at Booming. Required: a. Calculate the profit margin adjustment regarding the remaining stock. b. What consolidation entries should be made regarding this intra-entity sales? c. Why did/didn't you include the NCI in your previous answer? Assume that Booming bought products from Slamming for € 560,000. Slamming noted a profit margin of 40% (they usually upgrade their products with 40% of the cost of goods). Booming haven't sold all of these products at the end of 2020. 10% of the intra entity purchases still remain in inventory at Booming. Required: a. Calculate the profit margin adjustment regarding the remaining stock. b. What consolidation entries should be made regarding this intra-entity sales? c. Why did/didn't you include the NCI in your previous answer?
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a To calculate the profit margin adjustment regarding the remaining stock we need to determine the cost of the remaining stock and the corresponding p... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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