Assuming That X Inc

question 10

Multiple Choice

Assuming that X Inc. used the equity method, what adjustment would have to be made to the investment in Y account to adjust for any unrealized profits on Y's sales to X?

• A) No adjustment would be required.
• B) The account would have to be reduced by $240.
• C) The account would have to be reduced by $192.
• D)The account would have to be reduced by $48.

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