What is the after-tax dollar value of Sub realized profits

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Q1. Par Inc owns 83.83% of Sub Corp. During the year, Par sold inventory to Sub for $135,005. Exactly 52.87% of this inventory remained in Y's warehouse at year end. Sub sold inventory to Par for $67,510 of which 44.51% remained in X's warehouse at year end. Both companies are subject to a tax rate of 31.71%. The gross profit percentage on sales is 20% for both companies. What effect would Sub's unrealized profits on its sales to Par have on the non-controlling interest (NCI) account on the consolidated balance sheet? The NCI account will be adjusted by:

a. $713

b. $697

c. $664

d. $680

e. $647

Q2. Par Inc owns 81.43% of Sub Corp. During the year, Par sold inventory to Sub for $115,100. Exactly 51.07% of this inventory remained in Y's warehouse at year end. Sub sold inventory to Par for $57,555 of which 42.71% remained in X's warehouse at year end. Both companies are subject to a tax rate of 30.51%. The gross profit percentage on sales is 20% for both companies. What is the after-tax dollar value of Sub's realized profits during the year on its sales to Par?

a. $4,468

b. $4,239

c. $4,353

d. $4,124

e. $4,583

Reference no: EM133053613

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