What is the amount of the deferral of the intercompany gain

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Question - Company A purchases 85% of Company B. Company A reports operating income of $200,000 from its own activities, excluding any activities with Company B. Company B reports operating income of $70,000, excluding any activities with Company A. Company A sold an asset to Company B and has a $20,000 unrealized gain on the intercompany transfer. What is the amount of the deferral of the intercompany gain?

Reference no: EM133011109

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