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

Question

Quizplus · Accepted Answer

According to the question, Acker's share of the intra-entity inventory gross profit that should be deferred is 20% of the gross profit. The total intra-entity inventory gross profit is $40,000 ($200,000 - $160,000). Therefore, Acker's share of the gross profit is $8,000 ($40,000 x 0.20).

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