P Company Sells Inventory Costing $100,000 to Its Subsidiary, S

Essay

P Company sells inventory costing $100,000 to its subsidiary, S Company, for $150,000.At the end of the current year, one-half of the goods re-mainsremains in S Company's inventory.Applying the lower of cost or market rule, S Company writes down this inventory to $60,000.What amount of intercompany profit should be eliminated on the consolidated statements workpaper?