Assume on May 15, 2016, a parent company purchased a 75% interest in a subsidiary’s voting com-mon stock. During the year ended December 31, 2019, the subsidiary sold merchandise to the parent for $780,000. Before consolidation, the parent and subsidiary earn the same profits on intercompany sales as they earn on sales to unaffiliated customers. The parent’s gross profit percentage is 35% and the subsidiary’s is 30%. On December 31, 2019, 40% of this merchandise was in the parent’s ending inventory. What amount of intercompany profit in ending inventory must be deferred in preparation of the December 31, 2019 consolidated financial statements? a. $70,200 b. $109,200c. $312,000 d. $93,600

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

What’s the question exactly? i’d love to ! : )