Company P Has Consistently Sold Merchandise for Resale to Its

question 8

Short Answer

Company P has consistently sold merchandise for resale to its subsidiary at a gross profit of 20%.There were intercompany goods in both the subsidiary's beginning and ending inventory.As a result of these sales, which of the following amounts must be adjusted for when preparing only a consolidated balance sheet? ?
$\begin{array}{ccc}\text { Sales Profit } & \text { Beginning } & \text { Ending } \\\text { by Co. P during } & \text { Inventory } & \text { Inventory } \\\text { the Year } & \text { Profit } & \text { Profit }\end{array}$
A) $\begin{array}{lcc}&&\text {Yes } &&&&& \text { Yes } &&&& \text { Yes } \\\end{array}$
B) $\begin{array}{lcc} &&\text {Yes } &&&&& \text { No } &&&& \text { Yes } \\\end{array}$
C) $\begin{array}{lcc} &&\text {No } & &&&& \text { No } & &&& \text { Yes } \\\end{array}$
D) $\begin{array}{lcc} &&\text {No } & &&&& \text { No } & &&&& \text { No }\end{array}$

• A)\(\begin{array}{lcc}
• &&\text {Yes } &&&&& \text { Yes } &&&& \text { Yes } \\\end{array}\)
• B)\(\begin{array}{lcc} &&\text {Yes } &&&&& \text { No } &&&& \text { Yes } \\\end{array}\)
• C)\(\begin{array}{lcc} &&\text {No } & &&&& \text { No } & &&& \text { Yes } \\\end{array}\)
• D)\(\begin{array}{lcc} &&\text {No } & &&&& \text { No } & &&&& \text { No }
• \end{array}\)

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Definitions:

Physical Punishments

Disciplinary methods involving physical pain or discomfort as a response to undesirable behavior.

Branding

The process of creating a unique image, name, and identity for a product or service in the consumer's mind through marketing and distinctive design.

Nineteenth Century

The period from 1801 to 1900, characterized by industrialization, colonial expansion, and cultural changes.

Prison

A facility in which individuals who have been convicted of crimes are confined as a form of punishment and rehabilitation.