A Subsidiary Sold Inventories to Its Parent for $60 000

question 19

Short Answer

A subsidiary sold inventories to its parent for $60 000. The inventories had previously cost the subsidiary $48 000. By reporting date, the parent had sold 75% of the inventories to a party outside the group. The company tax rate is 30%. Which of the following are the adjustment entries in the consolidation worksheet at reporting date?

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Definitions:

Valves

Structures within the heart and veins that maintain the direction of blood flow by opening and closing according to the pressure gradient.

Transient Ischemic Attack

Often described as a "mini-stroke," this is a temporary blockage of blood flow to the brain, signaling an increased risk of stroke.

Mini-Stroke

Also known as a Transient Ischemic Attack (TIA), it's a temporary blockage of blood flow to the brain, causing short-lived stroke-like symptoms.

Mitral Valve Prolapse

A condition where the valve between the heart's left upper chamber and left lower chamber doesn't close properly.