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Problem - Nathan Inc sold 180,000 in inventory to miller co. during 20x0 for 250,000. Miller resold 108,000 of this merchandise in 20x0 with the remainder to be disosed of during 20x1.
Assuming Nathan owns 25% of miller and applies equity method:
1) Determine Nathan's share of the unrealized gain at the end of 20x0.
2) Prepare the journal entry Nathan should record at the end of 20x0 to defer the unrealized intra-entity inventory profit.
Prepare journal entries on the Bolton Company books to record all the events noted above under each of the following bases.
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