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

Question 25

Multiple Choice

Push Company owns 60% of Shove Company's outstanding common stock.
Intra-entity sales are as follows:
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 recognize the realization of the 20X1 deferred intercompany profit and to defer the 20X2 unrealized gross profit on inventory sales to Shove? A) Option A B) Option B C) Option C D) Option D
-Assume Shove sold the inventory to Push.
Using the fully adjusted equity method,what journal entry would be recorded by Push to recognize the realization of the 20X1 deferred intercompany profit and to defer the 20X2 unrealized gross profit on inventory sales to Shove?


A) Option A
B) Option B
C) Option C
D) Option D

Correct Answer:

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