(Answered) Question - company a sold 210000 in inventory to frank co

Accounting

Question - Company A sold 210,000 in inventory to Frank Co During 20x0 for 280,000. Frank resold 115000 of this merchandise in 20x0 with the remainder to be disposed of during 20x1. Assume Company A owns 26% of Frank Co and applies the equity method.

1) Calculate Company A share of the unrealized gain at the end of 20x0.

2) Prepare the journal entries Company A should record at the end of 20x0 to defer the unrealized intra-entity inventory profit.

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