Charleston Inc

question 18

Multiple Choice

Charleston Inc. acquired 75% of Savannah Manufacturing on January 4, 2020. During 2020, Charleston sold Savannah $460,000 of goods, which had cost $380,000. Savannah still owned 20% of the goods at the end of the year. In 2021, Charleston sold goods with a cost of $520,000 to Savannah for $700,000, and Savannah still owned 15% of the goods at year-end. What amount of intra-entity gross profit should be deferred in 2021?

• A) $27,000.
• B) $20,250.
• C) $16,000.
• D) $12,000.
• E) $0.

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Definitions:

Average hourly income

The mean income earned by an individual per hour of work.

Standard deviation

A metric that calculates the degree of spread or variability within a data set.

Standard error

A measure of the statistical accuracy of an estimate, indicating the variability of sample means around the population mean.

Standard deviation of population

A measure that quantifies the variation or spread of a set of data points in a population.