For Consolidation Purposes, What Amount Would Be Debited to January

question 109

Multiple Choice

For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2018 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise?

• A) $ 240.
• B) $ 300.
• C) $2,000.
• D) $1,600.
• E) $ 270.

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Definitions:

Market Effect

The impact of supply, demand, and external factors on the prices and availability of goods and services in a market.

Minimum-Wage Laws

A legal framework that specifies the minimum hourly earnings employers are obliged to pay their staff.

Lowest Wage

The minimum amount of compensation an employer is legally allowed to pay to workers, also known as minimum wage.

Free Market

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention.