Description of this paper

1) Please explain the calculation made on the "jou...




1) Please explain the calculation made on the "journal entries" tab [495 - (495/1.65)]=195. (spreadsheet attached) (Reference "note" tab #18. "No transactions between these companies occurred prior to 2009. Parent plans to buy 50,000 of merchandise from subsidiary in 2009 and will have 3,600 in remaining inventory on Dec 31 2009. Subsidiary is expected to buy 2,400 of merchandise from parent in 2009 and to have 495 in inv on dec 31, 2009. Parent and subsidiary price their products to yield a 65 percent and 80 percent markup on cost, respectively" 2) Can it be calculated a different way? Inter-company profit x % unsold x % owned by investor=Deferral? (see power point sides for example)


Paper#1451 | Written in 18-Jul-2015

Price : $25