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Malone Co. owned 70% of Bernard Corp.'s common stock. During November 2021, Bernard sold merchandise to Malone for $150,000. At December 31, 2021, 40% of this merchandise remained in Malone's inventory. For 2021, gross profit percentages were 25% of sales for Malone and 30% of sales for Bernard. The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is: Multiple Choice $18,000. $45,000. $36,000. $11,250. $14,400.
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Malone Co. owned 70% of Bernard Corp.'s common stock. During November 2021, Bernard sold merchandise...
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