Aladdin Ltd Sold Inventory Items (With a Cost of $100

question 40

Multiple Choice

Aladdin Ltd sold inventory items (with a cost of $100 000) to its subsidiary Genie Ltd for $120 000.Half of the inventory items were sold by Genie Ltd to external parties before the financial year end.Ignoring taxes,which of the following statements is correct with respect to this transaction only?

• A) Consolidated sales will decrease by $60 000.
• B) Consolidated sales will decrease by $100 000.
• C) Consolidated profit will decrease by $10 000.
• D) Consolidated profit will decrease by $20 000.

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Definitions:

Cyclic Products

Molecules that form rings during a chemical reaction, often increased in stability compared to their open-chain counterparts.

Grubbs Catalyst

A series of transition metal carbene complexes used in olefin metathesis reactions, known for their robustness and wide applicability in organic synthesis.

1,8-nonadiene

An organic compound, a diene with the formula C9H16, featuring double bonds at the 1st and 8th positions, used in the synthesis of polymers and chemicals.

Cationic Polymerization

A type of polymerization initiated by a positively charged species (cation), leading to the formation of polymers.