Strickland Company Sells Inventory to Its Parent, Carter Company, at a Profit

question 61

Multiple Choice

Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells one-third of the inventory in 2020.In the consolidation worksheet for 2021, assuming Carter uses the initial value method of accounting for its investment in Strickland, which of the following accounts would be credited to defer recognition of intra-entity gross profit with regard to the 2020 intra-entity transfers?

• A) Retained earnings.
• B) Cost of goods sold.
• C) Inventory.
• D) Investment in Strickland Company.
• E) Sales.

Distinguish between relay outputs on VFDs and auxiliary contacts on traditional motor starters.

Understand the programmability and flexibility of input functions in VFD applications.

Understand the benefits and principles of VFD (Variable Frequency Drive) technology and its impact on motor operation.

Identify the types of motors that are compatible with VFDs and their characteristics.

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Definitions:

Heavy Drinking

The consumption of alcohol in large quantities, often exceeding recommended limits, potentially leading to health and social issues.

First Three Months

Typically refers to the initial trimester in pregnancy or the early stages of a given process or period.

Environmental Factors

External elements that can influence development, health, and behavior, including climate, pollution, and social conditions.

Motor Skills

The abilities required to coordinate and execute physical actions and movements, such as walking, running, and writing.