Walsh Company Sells Inventory to Its Subsidiary, Fisher Company, at a Profit

question 19

Multiple Choice

Walsh Company sells inventory to its subsidiary, Fisher Company, at a profit during 2020. With respect to one-third of the inventory sold to Fisher, Walsh accounts for it using the equity method of accounting.In the consolidation worksheet for 2020, which of the following accounts would be credited to eliminate the intra-entity transfer of inventory?

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

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Definitions:

Sexual Regulation

The control or governance of sexual behavior and practices by societal norms, laws, or cultural standards.

Family Function

Family function refers to the various roles and responsibilities that family members fulfill to support the wellbeing and stability of the family unit, such as emotional support, socialization, and economic provision.

Regulation Of Sexuality

The control or governance of individual or collective sexual behaviors, expressions, and identity through societal norms, laws, or cultural practices.

Emotional Support

refers to the assistance provided to individuals through understanding, empathy, and encouragement to help them cope with stress or emotional challenges.