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A Subsidiary Sold a Quantity of Inventories to Its Parent

question 12

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A subsidiary sold a quantity of inventories to its parent entity at a before-tax profit of $12 000. The original cost of the inventories to the subsidiary was $41 000. At the end of the year all of the inventories were still on hand. The consolidation adjustment entry to eliminate this transaction will include which of the following line items?


Definitions:

Hidden Observer

A concept in hypnosis suggesting a part of the mind is aware of everything during hypnosis, even if another part is not conscious of it.

Mind

The set of cognitive faculties that enables consciousness, perception, thinking, judgment, and memory; a person's mental processes and state.

Stimulants

A category of drugs that speed up activity in the central nervous system, suppress appetite, and can cause a person to feel more awake, alert, and energetic; also called “uppers.”

Nervous System

The complex network of nerves and cells that transmit signals between different parts of the body, facilitating bodily functions and responses to the environment.

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