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18. Required information Based on the preceding information, at what dollar amou

ID: 2487995 • Letter: 1

Question

18.

Required information

Based on the preceding information, at what dollar amount is the ending inventory shown in the trial balance of the consolidated worksheet?

$45,000

$50,000

$40,000

$35,000

19.

Required information

Based on the preceding information, what amount of unrealized intercompany gross profit is eliminated in preparing the consolidated financial statements for the year?

$0

$5,000

$10,000

$15,000

20.

Required information

Based on the preceding information, at what amount is the inventory shown on the consolidated balance sheet for the year?

$45,000

$30,000

$40,000

$35,000

Please show your work. Thank you.

Explanation / Answer

18) On september 30, 2018 Cost recorded by Jackson corp 40000 / 0.80 = 50000 canadian dollar On December 31, 2018 Inventory recorded by Wilfred Company 50000 * 0.9 = 45000 dollars Less intercompany profit 10000 dollars ( 40000 - 30000) Value of inventory recorded on December 31 35000 dollars Hence last option is correct 19) Ubrealized gain of $ 10000 ( 40000 - 30000) is eliminated in preparing gross profit in the consolidated accounts 20) $ 3500 see working of question 18

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