An investor sells inventory for cash to a 25% associate. The inventory cost the investor $6 million… 1 answer below »

An investor sells inventory for cash to a 25% associate. The inventory cost the investor $6 million and is sold to the associate for $10 million. None of the inventory has been sold at year-end. How much of the profit on the transaction would be reported in the group accounts?

(a) $4 million.

(b) $1 million.

(c) $3 million.

(d) Zero.

"Is this question part of your assignment? We can help"

ORDER NOW