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Jones Corp owns 30% of Klein Inc for $250,000.During 2002,there were numerous intercompany inventory sales.During the year,Jones sold Inventory for $50,000 to Klein.At year-end,half of this Inventory was still in Klein's possession.Also during 2002,Klein sold Inventory for $60,000 to Jones.At year-end,20% of this Inventory was still in Jones' possession.During the year,Klein declared a net income and paid dividends in the amount of $20,000 and $5,000 respectively.Klein's fair values approximated its book values on the date of acquisition.Both companies price all sales at a 25% mark-up above cost.In addition,both companies are subject to an effective tax rate of 40%.
-What is the amount of after-tax profit realized from downstream sales during 2002?


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Tachycardia

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A chronic condition characterized by the compulsive use of substances despite harmful consequences, leading to mental and physical dependence.

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The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependency.

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