Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory to Stop in exchange for $487,000 cash. Pit's cost of the inventory (purchased in 2020) was...

Extracted text: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory to Stop in exchange for $487,000 cash. Pit's cost of the inventory (purchased in 2020) was $365,250. On 12/19/20, Stop sold 30% of the inventory to 3rd parties at a cash price of $194,800. The other 70% of the inventory remains on hand at 12/31/20.


Extracted text: A DEBIT TO 'SALES' IN THE AMOUNT OF: A CREDIT TO 'COST OF GOODS SOLD' IN THE AMOUNT OI A CREDIT TO 'INVENTORY' IN THE AMOUNT OF: