During 2017, Von Co

question 78

Multiple Choice

During 2017, Von Co.sold inventory to its wholly-owned subsidiary, Lord Co.The inventory cost $30,000 and was sold to Lord for $44,000.For consolidation reporting purposes, when is the $14,000 intra-entity gross profit recognized?

• A) When goods are transferred to a third party by Lord.
• B) When Lord pays Von for the goods.
• C) When Von sold the goods to Lord.
• D) When Lord receives the goods.
• E) No gain can be recognized since the transfer was between related parties.

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Definitions:

Website Post

Content published on a website, typically in the form of articles, blogs, or announcements.

Apprehension Criminal

Likely means the arrest or capture of a person suspected of having committed a crime.

Sofa Sale

The act of selling couches or sofas, typically conducted by furniture stores or individuals in various commerce platforms.

Invitation Negotiate

A call or solicitation for parties to discuss, propose, and potentially reach an agreement or settlement on a specific matter or contract.