Solution-What would be the net impact of these two

What would be the net impact of these two transactions

Reference no: EM133094945

Question - In X1, Plus Company purchases 75% of the outstanding shares of Minus Company. The following intercompany inventory sales occurred:

In X3, Plus sold merchandise to Minus with a profit of $10,000. 40% of the transferred units remained in Minus' inventory at the end of X3.

In X4, Plus sold merchandise to Minus with a profit of $5,000. 30% of the transferred units remained in Minus' inventory at the end of X4.

Assume the inventory is sold within a year.

A. What would be the net impact of these two transactions on the consolidated Inventory of Plus for the year X4?

B. What would be the net impact of these two transactions on the total consolidated Profit for the year X4?

Reference no: EM133094945

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What would be the net impact of these two transactions

Reference no: EM133094945

Reference no: EM133094945

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