What is Acker's share of the intra-entity inventory gross profit that should be deferred on December 31, 2017?

Question

Quizplus · Accepted Answer

Acker's share of the intra-entity inventory gross profit that should be deferred on December 31, 2017, is $1,600. This is because Acker sold 40% of the inventory to Banner, and the gross profit on this sale was $4,000. Therefore, Acker's share of the gross profit that should be deferred is $4,000 x 40% = $1,600.

What Is Acker's Share of the Intra-Entity Inventory Gross Profit