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Pomona Corporation purchased a 90% interest in Seattly Company on January 2, 2013. It accounts...

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Pomona Corporation purchased a 90% interest in Seattly Company on January 2, 2013. It accounts for its investment in Seattly using the cost method. Pomona bought Seattly because Seattly was its primary supplier of merchandise for resale. During 2013, Pomona bought merchandise from Seattly. The selling price to Pomona was $200,000. Seattly uses a 25% markup on cost. At the end of 2013 , Pomona still had in its books 25 percent of the inventory purchased from Seattly. In 2014, the intercompany sales totaled $260,000, with 20 percent left in inventory at the end of the year. REQUIRED A. Compute the unrealized profit in ending inventory at the end of 2013 and 2014 and Prepare the workpaper entries to reflect the intercompany sales for December 31, 2014 B. Assume the intercompany sales were from Pomona to Seattly. Prepare the elimination entries as of December 31, 2014 C. Assume that Pomona uses the complete equity method of accounting for its investment in Seattly. Prepare the necessary elimination entries for December 31, 2014 assuming upstream sales

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