a) P Company sold merchandise to a subsidiary for $64,000. Gross profit rate is 40%. At year
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a) P Company sold merchandise to a subsidiary for $64,000. Gross profit rate is 40%. At year end, 20% of this remains unsold. The tax rate is 30%. What is the before tax and after-tax unrealized profit in ending inventory?
b) P Company sold merchandise to a subsidiary for $63,000. The mark-up on cost is 50%. At year end, 20% of this remains unsold. The tax rate is 30%. What is the before tax and after tax unrealized profit in ending inventory?
c) AB Company issued a 10 year, 5%, $2,000,000 bond paying interest twice a year at a market rate of 4.2%. What was the issue price?
Related Book For
Ethics in Accounting A Decision Making Approach
ISBN: 978-1118928332
1st edition
Authors: Gordon Klein
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