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

question 32

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
• E) None of the given answers.

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Definitions:

Planned And Emergent Approaches

Strategies that involve deliberate planning and those that evolve in response to unexpected opportunities and challenges.

Shared Sense Of Purpose

A common understanding and commitment among members of a group or organization towards achieving a common goal.

Force-Field Analysis

A method developed by Kurt Lewin to analyze the factors that support or hinder a particular situation or change initiative.

New Direction

A change in strategy, goals, or objectives that leads an individual, team, or organization towards a different path or course of action.