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_____ (Module 1) in 2005, Paxco Sold Inventory Above Cost

Question 19

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_____ (Module 1) In 2005, Paxco sold inventory above cost to Saxco, its 100%-owned subsidiary. At 12/31/05, $3,000 of unrealized intercompany profit existed. In 2006, Saxco resold this inventory. Which of the following entries is made in the general ledger at 12/31/06 (not 05)?
_____ (Module 1) In 2005, Paxco sold inventory above cost to Saxco, its 100%-owned subsidiary. At 12/31/05, $3,000 of unrealized intercompany profit existed. In 2006, Saxco resold this inventory. Which of the following entries is made in the general ledger at 12/31/06 (not 05)?

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