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LO 1-7 11. Jubilee, Inc., owns 35 percent of JPW Company and applies the equity...

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Accounting

LO 1-7 11. Jubilee, Inc., owns 35 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $60,000 and then sells it to JPW for $75,000. At the end of the year, JPW still holds only $30,000 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method? a. $2,100 b. $2,625 c. $6,000 d. $10,500 4
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11. Jubilee, Inc., owns 35 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $60,000 and then sells it to JPW for $75,000. At the end of the year, JPW still holds only $30,000 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method? a. $2,100 b. $2,625 c. $6,000 d. $10,500

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