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What the unrealized profit in ending inventory

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Question - Suppose that there is no intercompany transaction between subsidiary and parent this year. Parent owns 90% of subsidiary and $10,000 is the last year unrealized profit. Subsidiary reported 20,000 income. Based on the information above, what the unrealized profit in ending inventory?

A) $45,000

B) $5,000

C) $3,750

D) $0

Reference no: EM133040315

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