Oak Company owns 80% of Maple Company. Oak acquired this 80% of Maple at book value. (Fair value equaled book value equaled the acquisition price at the date of acqusition.) On February 24, 2018, Maple sold goods costing $1500 to Oak at a gross profit of 30%. Oak had 25% of these goods on hand at the end of 2018. What is the amount of profits in 2018 Oak's ending inventory that must be deferred from this sale?

Answer rating: 100% (QA)

To determine the amount of profit in Oaks ending inventory that must be deferred from this sale we f... View the full answer