Push Company owns 60% of Shove Company's outstanding common stock. Intra-entity sales are as follows:YearInventoryCostTransferPriceInventory Remaining at Year End(at transfer price)20X1$80,000 $100,000 $30,000 20X2$110,000 $130,000 $26,000 Assume Shove sold the inventory to Push. Using the fully adjusted equity method, what journal entry would be recorded by Push to defer the unrealized gross profit on inventory sales to Shove in 20X1? A.Income from Shove Company6,000 Investment in Shove Company 6,000B.Income from Shove Company3,600 Investment in Shove Company 3,600C.Investment in Shove Company6,000 Income from Shove Company 6,000D.Investment in Shove Company3,600 Income from Shove Company 3,600
A. Option A
B. Option B
C. Option C
D. Option D
Answer: B
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