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REFERENCE: Ref.01_06 Clancy Incorporated,sold $210,000 of Its Inventory to Reid Company During

Question 49

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REFERENCE: Ref.01_06
Clancy Incorporated,sold $210,000 of its inventory to Reid Company during 2008 for $350,000.Reid sold $224,000 of this merchandise in 2008 with the remainder to be disposed of during 2009.Assume Clancy owns 30% of Reid and applies the equity method.
-What journal entry will be recorded at the end of 2008 to defer the unrealized intercompany profits??
REFERENCE: Ref.01_06 Clancy Incorporated,sold $210,000 of its inventory to Reid Company during 2008 for $350,000.Reid sold $224,000 of this merchandise in 2008 with the remainder to be disposed of during 2009.Assume Clancy owns 30% of Reid and applies the equity method. -What journal entry will be recorded at the end of 2008 to defer the unrealized intercompany profits??   A) Entry A. B) Entry B. C) Entry C. D) Entry D. E) No entry is necessary.


A) Entry A.
B) Entry B.
C) Entry C.
D) Entry D.
E) No entry is necessary.

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