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:

Self Competency

An individual's belief in their own abilities and capacities to achieve specific outcomes or handle specific tasks.

Knowledge

Information, understanding, or skills acquired through experience or education; the theoretical or practical understanding of a subject.

Abilities

The natural or acquired skills and talents that enable individuals to perform tasks effectively.

Career Development

The process of growth and progression in one's professional life, often involving education, training, and work experience.