Lauralee, inc. owns a 30% interest in eastwood co., giving it representation on the investee’s board of directors. at the beginning of the year, the equity investment was carried on lauralee’s balance sheet at $500,000. during the year, eastwood reported net income of $250,000 and paid lauralee a dividend of $50,000. in addition, lauralee sold inventory to eastwood, recording a gross profit of $20,000 on the sale. at the end of the year, 50% of the merchandise remained unsold by eastwood.

required:
a. prepare the equity method journal entry to defer the unrealized inventory gross profit.
b. how much equity income should lauralee report from eastwood during the year?
c. what is the balance in the equity investment at the end of the year?

Exercise 8-6 goods in transit [lo8-2] the kwok company's inventory balance on december 31, 2016, was $190,000 (based on a 12/31/16 physical count) before considering the following transactions: 1. goods shipped to kwok f.o.b. destination on december 20, 2016, were received on january 4, 2017. the invoice cost was $35,000. 2. goods shipped to kwok f.o.b. shipping point on december 28, 2016, were received on january 5, 2017. the invoice cost was $22,000. 3. goods shipped from kwok to a customer f.o.b. destination on december 27, 2016, were received by the customer on january 3, 2017. the sales price was $45,000 and the merchandise cost $27,000. 4. goods shipped from kwok to a customer f.o.b. destination on december 26, 2016, were received by the customer on december 30, 2016. the sales price was $25,000 and the merchandise cost $18,000. 5. goods shipped from kwok to a customer f.o.b. shipping point on december 28, 2016, were received by the customer on january 4, 2017. the sales price was $30,000 and the merchandise cost $17,000. required: determine the correct inventory amount to be reported in kwok's 2016 balance sheet.

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators

Which plan offers a tax-free education?