Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method...

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Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting was used. The book value Multiple Choice $656,000. $666,000. o $646.000 O $636,000. O O $624,000.

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Answer 1

Answer #1

Year 2020 2021 Intra-entity inventory transfer profit % [(75,000 - 55,000)/75,000]*100 = 26.67% [(110,000 - 70,000)/110,000]

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Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method...

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