d. Engine Corporation’s inventory includes $22,400 of merchandise acquired from Boat Corporation subsequent to July 2018, for which no payment has been made. Boat Corporation marks up the merchandise...

d. Engine Corporation’s inventory includes $22,400 of merchandise acquired from Boat Corporation subsequent to July 2018, for which no payment has been made. Boat Corporation marks up the merchandise 40% on cost.

e. Titan Corporation acquires in the open market twenty-five $1,000, 6% bonds of Boat Corporation for $21,400 on January 1, 2015. Boat Corporation bonds mature December 31, 2020. Interest is paid each June 30 and December 31. Straight-line amortization is allowed on the basis of materiality.