Push Company owns 60% of Shove Company's outstanding common stock. Intra-entity sales are as follows:
-Assume Shove sold the inventory to Push. Using the fully adjusted equity method, what journal entry would be recorded by Push to defer the unrealized gross profit on inventory sales to Shove in 20X1?

Question

Push Company owns 60% of Shove Company's outstanding common stock. Intra-entity sales are as follows: 
-Assume Shove sold the inventory to Push. Using the fully adjusted equity method, what journal entry would be recorded by Push to defer the unrealized gross profit on inventory sales to Shove in 20X1?

Quizplus · Accepted Answer

The Answer of Push Company owns 60% of Shove Company's outstanding common stock. Intra-entity sales are as follows: 
-Assume Shove sold the inventory to Push. Using the fully adjusted equity method, what journal entry would be recorded by Push to defer the unrealized gross profit on inventory sales to Shove in 20X1?

Push Company Owns 60% of Shove Company's Outstanding Common Stock