A Subsidiary Entity Sold Inventory to Its Parent Entity at a Profit

question 29

Multiple Choice

A subsidiary entity sold inventory to its parent entity at a profit of $4000. The goods had originally cost the subsidiary $10 000. At the end of the year all the inventory was still on hand. The adjustment entry to deal with this transaction on consolidation would include the following line item:

• A) CR Inventory $4 000
• B) CR Inventory $6 000
• C) CR Inventory $10 000
• D) CR Inventory $14 000

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Definitions:

Neuron Cell Body (Soma)

The part of a neuron that contains the nucleus and most of the cell's organelles; it plays a crucial role in processing and transmitting neural information.

Neuron

A neuron that conveys both electrical and chemical messages across the nervous system.

EPSPs

Excitatory Post-Synaptic Potentials, which are temporary depolarizations of postsynaptic cells that make it more likely for a neuron to fire an action potential.

IPSPs

Inhibitory post-synaptic potentials, which decrease the likelihood of a post-synaptic neuron firing an action potential.