Where an investor sells inventory to an associate in a prior year and the inventory is sold by the associate during the current year,the investment in associate account is:
A)not adjusted as the profit has been realised.
B)decreased by the investor's share of the realised profit.
C)increased by the investor's share of the realised profit.
D)increased by the full amount of the realised profit.

Question

Quizplus · Accepted Answer

The Answer of Where an investor sells inventory to an associate in a prior year and the inventory is sold by the associate during the current year,the investment in associate account is:
A)not adjusted as the profit has been realised.
B)decreased by the investor's share of the realised profit.
C)increased by the investor's share of the realised profit.
D)increased by the full amount of the realised profit.

Where an Investor Sells Inventory to an Associate in a Prior