Chapter 5
SOLUTIONS TO EXERCISES. Solution E5-1. 1 a 5 c. 2 d 6 a. 3 a 7 a. 4 c 8 c.
Solution E5-2 [AICPA adapted]. 1 a. 2 c. Unrealized profits from intercompany
sales with Kent are eliminated from the ending inventory: $320,000 combined
current assets less $12,000 unrealized profit ($60,000 ´ 20%). 3 c. Combined
cost of sales ...