What Is the Amount of Unrealised Profit That Needs to Be

question 21

Multiple Choice

What is the amount of unrealised profit that needs to be eliminated at the end of the period,in the following situation,where Barker Limited is the parent of Corbett Limited? (Ignore the tax effect.)
Barker purchases 500 units of inventory for $20 each.Barker sells this entire inventory to Corbett at a mark-up of 50%.At the end of the period,100 units are on hand.

• A) $1000
• B) $2000
• C) $3000
• D) $5000

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Definitions:

Crude Quantity

An initial, unrefined estimate of the amount or volume of a substance or material.

Grief

The emotional suffering one feels when something or someone the individual loves is taken away.

Bereavement Support

is the assistance, counseling, and emotional comfort provided to individuals who are dealing with the loss of a loved one.

Coping

The process of effectively dealing with stressors or problems, utilizing various strategies or mechanisms.