A Parent Sold Some Inventories to Its Subsidiary for $55

question 18

Multiple Choice

A parent sold some inventories to its subsidiary for $55 000. The goods had originally cost the parent $40 000. At the end of the year all of the inventories were still on hand. The consolidation adjustment entry to eliminate this transaction will include the following line items?

• A) Cr Cost of sales $15 000
• B) Cr Cost of sales $40 000
• C) Cr Cost of sales $95 000
• D) Cr Cost of sales $55 000

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Definitions:

Variables

Elements, features, or factors that are liable to vary or change within the context of a scientific study or experiment.

Regression Coefficient

A value that represents the degree of change in the dependent variable for a one-unit change in the independent variable in a regression analysis.

R

A programming language and software environment used for statistical analysis, graphics representation, and reporting.

Correlation Matrix

A table showing the correlation coefficients between sets of variables to summarize their mutual relationships.