Company A purchases 85% of Company B. Company A reports an operating income of $200,000 from its own activities, excluding any activities with Company B.

Company B reports an operating income of $70,000, excluding any activities with Company A. Company A sold an asset to Company B and has a $20,000 unrealized gain on the intercompany transfer.

What is the amount of the deferral of the intercompany gain?

Answer rating: 100% (QA)

Intercompany transactions may result to gains or losses This gains or losses shou... View the full answer