What unrealized profit in ending inventory is

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Suppose that there is no intercompany transaction between subsidiary and parent this year. Parent owns 90% of subsidiary and $10,000 is the last year unrealized profit. Subsidiary reported 20,000 income.

Problem 1: Based on the information above, unrealized profit in ending inventory is:

A) $45,000
B) $5,000
C) $3,750
D) $0

 

Reference no: EM132939932

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