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

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Definitions:

Synapses

The junctions through which neurons communicate with each other, using chemical or electrical signals.

Psychodynamic Model

A theoretical approach in psychology that emphasizes the role of unconscious processes and childhood experiences in shaping behavior and personality.

Deterministic Assumption

A theoretical belief that all events, including human behavior, are ultimately determined by causes regarded as external to the will.

Cognitive Model

A psychological framework that explains mental health disorders through the lens of an individual's thoughts, beliefs, and perceptions.