During the Year a Parent Makes Sales of Inventory at a Profit

question 13

Multiple Choice

During the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary.The subsidiary also makes sales of inventory at a profit to its parent during the same year.Both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another.Consolidated revenues for the year should exclude:

• A)80 percent of the total revenues from intercompany sales.
• B)total revenues from intercompany sales.
• C)only the revenues from the subsidiary's intercompany sales.
• D)only the revenues from the parent's intercompany sales.

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Definitions:

Amygdala

A brain structure involved in processing emotions, particularly fear and pleasure.

Overexposure

The excessive exposure to a factor, such as sunlight, chemicals, or information, which can lead to negative health consequences or desensitization.

Cortisol Secretion

The process of releasing cortisol, a steroid hormone, from the adrenal glands in response to stress or low blood-glucose concentration.

HPA Axis

The hypothalamic-pituitary-adrenal axis, a complex set of direct influences and feedback interactions among three components: the hypothalamus, the pituitary gland, and the adrenal glands, crucial for the body’s response to stress.