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Investor owns 20% of Investee and applies the equity method. In 2020, Investee sells merchandise...

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Question

Accounting

  1. Investor owns 20% of Investee and applies the equity method. In 2020, Investee sells merchandise costing $100,000 to Investor for $150,000. Investor's ending inventory includes $30,000 purchased from Investee. What amount of unrealized gross must be deferred in the equity method entry?

Select one:

A. $10,000

B. $ 2,000

C. $30,000

D. $ 6,000

Answer & Explanation Solved by verified expert
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