*Deferred Profit Reported in the TB is unadjusted.

Deferred Profit reported is computed as follows:

DP in beginning inventory **
Add: DP in STB **
DP reported in TB **

Elimation Entries are posted on the TB after reconciling the reciprocal accounts.
Closing entries are not considered.

Deferred Profit is not a liability, it's a contra asset account. It should be

netted against IIB to be presented as asset.

Problem No. 6
1. 19,200
2. 60,960
3. 569,760