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What Is the Amount of Unrealised Profit That Needs to Be

Question 21

Multiple Choice

What is the amount of unrealised profit that needs to be eliminated at the end of the period,in the following situation,where Barker Limited is the parent of Corbett Limited? (Ignore the tax effect) Barker purchases 500 units of inventory for $20 each.Barker sells this entire inventory to Corbett at a mark up of 50 per cent.At the end of the period,100 units are on hand.


A) $1,000.
B) $2,000.
C) $3,000.
D) $5,000.
E) $10,000.

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