What is the balance of the unrealized profit in branch inventory on december 31, 2016? The following data were provided by the accountants of the Home Office and Branchfor the year ended December 31, 2016:ParticularsHome Office bookBranch BookNet sales to outside customerP1,000,000P800,000Beginning inventoryNet purchases from outside supplierShipments to branchShipments from Home OfficeEnding inventoryOperating expensesThe current corporate income tax rate is 30%It is the policy of the company to use specific identification for inventoryFor the year ended December 31, 2015, the Home Office bills its branch with a grossprofit rate of 40% based on costHalf of the beginning inventory of the branch was acquired from outside suppliersThe ending inventory of the branch is broken down as follows60% from outside suppliers26% from 2016 shipment from home office14% from 2015 shipment from home office300,000800,000400,000140.000250,000100,000200,000500,000200,000100,000

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What is the balance of the unrealized profit in branch inventory on december 31, 2016?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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