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In: Accounting
Simon Company owns 40% of the outstanding voting common stock of Nixon Corp. and has the...
Simon Company owns 40% of the outstanding voting common stock of Nixon Corp. and has the ability to significantly influence Nixon Corp.’s operations. During 2016 Simon had sold inventory costing $35,000 to Nixon for $50,000. All but 25% of that inventory had been sold to outsiders by Nixon Corp. by then end of fiscal year 2016. What amount of unrealized intra-entity inventory profit should be deferred by Simon Company in 2016? What is the journal entry that Simon company would make to record this deferral of profit? What journal entry does Simon Company make when the remaining inventory is sold in 2016?
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ekkarill92 answered 1 year agoRelated Solutions
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$
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