Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. luffi inc. owns 20% of bruce inc. and appropriatel

Luffi Inc. owns 20% of Bruce Inc. and appropriately applies the equity method. During the...

80.2K

Verified Solution

Question

Accounting

Luffi Inc. owns 20% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory costing $60,000 and then sold it to Luffi for $80,000. What amount of gross profit on intra-entity sales must be deferred by Luffi in each of the following situations? a. Assuming that 1,000 inventory was left unsold with Luffi at the end of the period: b. Assuming that at year-end, all of the merchandise had been sold by Luffi to other customers

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

Q

Find the equation of the following parabolay-6y+7=2x(y + 3) = 2(x + 1)(y - 3)...

Geometry
Q

A mass of 14.22g of (NH4)2SO4 (molar mass = 132.06g/mol) is dissolved in water. After the solution...

Chemistry
Q

Question: You are assessing an animal that was brought across the state. The animal has a...

Medical Sciences
Q

Explain how the value of a social media network increases with the number of connections. Apply...

Economics
Q

A scientist has two solutions, which she has labeled Solution A and Solution B. Each...

Basic Math
Q

Consider two normal distributions one with mean 10 and standard deviation 3 the other with...

Statistics
Q

Use the elimination method to solve each sys tem of linear equations 1 x y...

Algebra
Q

Part B: The municipal mill rate in the neighbourhood is 22.375 mills. There is an...

Accounting
Q

Luthan Company uses a plantwide predetermined overhead rate of $23.70 per direct labor-hour. This predetermined...

Accounting
Q

Plant Company acquired all of Sprout Corporation's stock on January 1, 20X6 for $150,000 cash....

Accounting
Q

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is...

Accounting
Q

Judys client, Nurse Alexis Connor, is 35 years old with a single filing status. Review...

Accounting