Quartermain Limited Has the Following Investments: Christian Limited - a 100

question 59

Multiple Choice

Quartermain Limited has the following investments: Christian Limited - a 100 per cent owned subsidiary
Hudson Limited - a 75 per cent owned subsidiary
Lane Limited - a 40 per cent owned associate
Daicos Limited - a 25 per cent owned associate
Lane Limited sells inventory,which cost Lane Limited $80,000 to acquire,to Hudson Limited,at a mark up of 25 per cent.A quarter of the inventory remains on hand at the end of the period.What is the amount to be eliminated in the consolidated accounts of Quartermain Group Limited?

• A) $4,000.
• B) $2,500.
• C) $2,000.
• D) $5,000.
• E) $10,000.

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