Elimination of the intercompany sales transaction

Reference no: EM13130504

During Year 1, Abaco Co., the 100% owned subsidiary of Walker Inc., sold merchandise to Walker at a 25% markup over its cost. Intercompany sales to Walker totaled $800,000 during Year 1. On December 31, Year 1, Walker held $200,000 of the inventory purchased from Abaco in its ending inventory. In Walker's December 31, Year 1 elimination of the intercompany sales transaction, the intercompany profit that must be eliminated from ending inventory is:

Reference no: EM13130504

Questions Cloud

Compute the past service costs included in net pension : Calculate the past service costs included in 2009 net pension expense (or revenue) under IAS 19. Compute the past service costs included in 2009 net pension expense (or revenue) under US GAAP

The ironies in these two story : (1)what are the ironies in these two story ? how are they develop . story of an hour by kate chopin and the jewellry by guy de maupassant 500words.

What amount of interest expenses should appear : CGT Reliable Accounting Firm purchased some property on December 31, 2009, for $ 170,000, paying $ 40,000 in cash and obtaining a mortgage loan for the other $ 130,000. The interest rate is 9% per year, with $ 8055 payments made at the end of Marc..

Illustrate which fund should the money be recorded in : When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, illustrate which fund should t..

Elimination of the intercompany sales transaction : In Walker's December 31, Year 1 elimination of the intercompany sales transaction, the intercompany profit that must be eliminated from ending inventory is:

Find equivalent z score-percentage of area above score : Find the equivalent Z score, the percentage of the area above the score, and the percentage of the area below the score.

Explain the chemical process that occurred in his muscle : Explain the chemical process that occurred in his muscle cells to cause this discomfort. Explain the chemical reaction that has taken place in the body after exercise.

What is the ethical dilemma in this situation : Heidi Hart, the vice president of financial operations for Castle Candy Manufacturing Company and the controller, Linda Brown, are reviewing the financial statements for the prior two years of 2003 and 2004.

Percentage unused avaliable labor-exponential distribution : A certain service station uses a team of 3 mechanics in one repair station to work on each car that needs repair. This team can repair cars at a rate of 9 per day.

User Account

All Pages