Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. blue mountain, inc.owns 40% of grand co. and appli

Blue Mountain, Inc.owns 40% of Grand Co. and applies the equity method. During the current...

80.2K

Verified Solution

Question

Accounting

Blue Mountain, Inc.owns 40% of Grand Co. and applies the equity method. During the current year, Blue Mountain bought inventory costing $100,000 and then sold it to Grand for $150,000. At year-end, only 25% of the merchandise was still being held by Grand. What amount of intra-entity inventory profit must be deferred by Blue Mountain? Select one: A. $12,500 B. $ 5,000 C. $15,000 D. $37,500

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

a) Prove stereographic projection maps circles not containing (0,0,1) from the upper half sphere’s surface into...

Basic Math
1.2K views

The data show the population (in thousands) for a recent year of a sample of cities...

Physics
1.2K views

Two charged objects have an attractive force of 0 0929 N If the distance separating...

Geometry
1.2K views

A uduqni bas 19qsq 8 CK AOUL 200LG OUG ADM B U 45 T

Calculus
1.2K views

T T C 2 For f x sin x and g x 0 5x on...

Algebra
1.2K views

20 Solve the linear system of equations using the graphing method y 7x 12 y...

Algebra
1.2K views

The sporting equipment has been sorted into baseballs and bats The number of baseballs is...

Accounting
1.2K views

16. Caleb Company projects the flowing sales (Click on the con to view the projected...

Accounting
1.2K views

The following is Allison Corporation's contribution format income statement for December 2014: Sales $800,000 Less:...

Accounting
1.2K views

1. The adjusted account balances of Fitness Centre at July 31 are as follows: Accounts...

Finance
1.2K views

The regression model has been estimated for stocks A and B with the following results:...

Finance
1.2K views

A five-year project requires an investment of -296 and has the following cash flows in...