Anderson Company, a 90% Owned Subsidiary of Philbin Corporation, Transfers

question 48

Multiple Choice

Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2020 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2020 intra-entity transfer of merchandise?

• A) $0.
• B) $1,600.
• C) $300.
• D) $240.
• E) $270.

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Work Environment

The setting, conditions, and culture in which an individual performs their job, including physical and social aspects.

Biohazardous Waste Label

A label that identifies containers or bags holding waste contaminated with blood or other infectious materials.

Red Bags

Specially designated bags used in medical and healthcare settings for containing and disposing of biohazardous or infectious waste safely.

Blood Or Body Fluids

Liquids originating from inside the bodies of living organisms, essential for transporting nutrients, oxygen, and waste materials.