Elvis Company Purchases Inventory for $70,000 on Mar 19,2008 and Sells

question 36

Multiple Choice

Elvis Company purchases inventory for $70,000 on Mar 19,2008 and sells it to Graceland Corporation for $95,000 on May 14,2008.Graceland still holds the inventory on December 31,2008,and determines that its market value (replacement cost) is $82,000 at that time.Graceland writes the inventory down from $95,000 to its lower market value of $82,000 at the end of the year.Elvis owns 75 percent of Graceland.
-Based on the information given above,what amount of inventory should be eliminated in the consolidation workpaper for 2008?

• A)$15,000
• B)$14,000
• C)$12,000
• D)$13,000

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Definitions:

Round Robin

A system or method where each participant takes turns in a sequence or contributes in a rotating fashion.

Readiness to Change

A measure of an individual's willingness to adopt new behaviors or take action towards personal growth or improvement.

Pre-contemplation

A stage in the change process where individuals are not yet considering change or are unaware of the need for change.

Confrontation

A direct form of communication where conflicting parties address and discuss their differences, often aiming for resolution or understanding.