What is the investor's share of gross profit on intra-entity inventory sales that should be deferred on December 31, 2018?

Question

Quizplus · Accepted Answer

The investor's share of gross profit on intra-entity inventory sales that should be deferred on December 31, 2018, is $900. This is because the investor owns 30% of the subsidiary, and the subsidiary's gross profit on the intra-entity inventory sales was $3,000. Therefore, the investor's share of the gross profit is $3,000 * 30% = $900.

What Is the Investor's Share of Gross Profit on Intra-Entity