In 2006, a Home Office Shipped Inventory Costing $400,000 to Its

Multiple Choice

In 2006, a home office shipped inventory costing $400,000 to its newly established branch at a transfer price of $480,000. In the branch's year-end closing entries, the branch charged $360,000 of this inventory to Cost of Sales. The adjusted general ledger balance in the Intracompany Profit Deferred account at year-end should be

A) $3,333
B) $10,000
C) $20,000
D) $30,000
E) None of the above.