Prince Corp

question 56

Multiple Choice

Prince Corp. owned 80% of Kile Corp.'s common stock. During October 2013, Kile sold merchandise to Prince for $140,000. At December 31, 2013, 50% of this merchandise remained in Prince's inventory. For 2013, gross profit percentages were 30% of sales for Prince and 40% of sales for Kile. The amount of unrealized intra-entity profit in ending inventory at December 31, 2013 that should be eliminated in the consolidation process is

• A) $28,000.
• B) $56,000.
• C) $22,400.
• D) $21,000.
• E) $42,000.

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Definitions:

Communicative Framework

A structure or system that facilitates effective communication, often within an organizational or interpersonal context.

Assumptions

are beliefs or ideas that are accepted as true without proof, often serving as the basis for reasoning, decisions, or actions.

E-Mail

Electronic mail, a method of exchanging messages and files between individuals using electronic devices.

Written Communication

The process of conveying messages or information through written symbols, including letters, emails, reports, and text messages.