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X Inc.owns 80% of Y Inc.During 2009,X Inc sold inventory to Y for $10,000.Half of this inventory remained in Y's warehouse at year end.Half of this inventory remained in Y's warehouse at year end.Also during 2009,Y Inc sold Inventory to X Inc.for $5,000.40% of this inventory remained in X's warehouse at year end.Both companies are subject to a tax rate of 50%.The gross profit percentage on sales is 20% for both companies.Unless otherwise stated,assume X Inc.uses the cost method to account for its Investment in Y.Inc.
-What is the after-tax dollar value of Y's realized profits during the year on its sales to X?
Richard Boyatzis
A distinguished professor known for his work in emotional intelligence, behavior change, and competence.
Defensive Behavior
Actions or reactions aimed at protecting oneself from perceived threats or criticism.
Passive-Aggressive
A behavior pattern where individuals express negative feelings indirectly rather than directly addressing them.
Emotional Intelligence
The capacity to comprehend, utilize, and control one's emotions constructively to mitigate stress, communicate efficiently, sympathize with others, surmount obstacles, and resolve conflicts.
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