A Subsidiary Entity Sold Goods to Its Parent Entity for $100

question 21

Multiple Choice

A subsidiary entity sold goods to its parent entity for $100 000. The inventories originally cost the subsidiary $125 000. At reporting date, the parent still held all of the inventories. Which of the following adjustments must be included as part of the consolidation entry to eliminate this transaction?

• A) Cr Inventory $100 000
• B) Cr Inventory $125 000
• C) Dr Inventory $25 000
• D) Dr Inventory $225 000

---

Definitions:

Location-Aware Devices

Location-aware devices are gadgets equipped with technology to detect and utilize their geographical position, enhancing services like navigation and personalized content.

Location-Aware Content

Digital content that is customized or altered based on the geographical location of the user.

User Experience

The overall experience of a person using a product, system, or service, especially in terms of how easy or pleasing it is to use.

Social Media

Platforms and technologies that enable users to create, share content, and participate in social networking.