Companies A,B and C Are All Part of the One

question 39

Multiple Choice

Companies A,B and C are all part of the one economic entity,but are all separate legal entities required to prepare their own financial statements.Company A sold Company B inventory that cost $56 000 for $78 000.At the end of the same period Company B has three-quarters of that inventory still on hand and the rest has been sold to an entity outside the economic group.At what amount should the inventory remaining in Company B be recorded in the consolidated statements?

• A) $14 625
• B) $56 000
• C) $58 500
• D) $42 000

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Definitions:

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Process of Coregulation

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