A Parent Company Sells Some Inventory to Its Subsidiary for $5000.The

question 10

Multiple Choice

A parent company sells some inventory to its subsidiary for $5000.The original cost of the inventory to the parent was $4000.The economic entity only makes a profit when:

• A)the subsidiary resells the inventory back to the parent
• B)the subsidiary resells the inventory outside the group
• C)the parent sells the inventory to the subsidiary
• D)none of the above

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Definitions:

C$1,500

Canadian dollars one thousand five hundred, often used in financial transactions to denote currency amount.

Airport Exchange Kiosk

An airport exchange kiosk is a physical location within an airport where travelers can exchange their home currency for that of their destination country.

Currency P

A placeholder reference for a specific currency being discussed or analyzed, with "P" standing for the particular currency in question.

Exchange Rate

The exchange rate of one currency in terms of another.