Wathan Inc.sold $180,000 in inventory to Miller Co.during 2008,for $270,000.Miller resold $108,000 of this merchandise in 2008 with the remainder to be disposed of during 2009.
Required:
Assuming Wathan owns 25% of Miller and applies the equity method,prepare the journal entry Walthan should have recorded at the end of 2008 to defer the unrealized intercompany inventory profit?

Question

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The Answer of Wathan Inc.sold $180,000 in inventory to Miller Co.during 2008,for $270,000.Miller resold $108,000 of this merchandise in 2008 with the remainder to be disposed of during 2009.
Required:
Assuming Wathan owns 25% of Miller and applies the equity method,prepare the journal entry Walthan should have recorded at the end of 2008 to defer the unrealized intercompany inventory profit?