Elbonia Corporation,a 100 Percent Subsidiary of Atomic Corporation,caters to Its

question 13

Multiple Choice

Elbonia Corporation,a 100 percent subsidiary of Atomic Corporation,caters to its parent's entire inventory requirements.In 2007,Elbonia produced inventory at a cost of $36,000 and sold it to Atomic for $75,000.Atomic held all the items in inventory on January 1,2008.During 2008,Atomic sold all the units for $98,000.Assume that the companies had no other transactions during 2007 and 2008.
-Based on the preceding information,what amount would be reported in the consolidated financial statements for cost of goods sold for 2008?

• A)$0
• B)$39,000
• C)$36,000
• D)$98,000

---

Definitions:

Fill

To occupy or complete a space, gap, or requirement fully.

Search Pathway

The process or journey a user takes to locate information, often related to web navigation or information retrieval strategies.

Online Platform

An online platform is a digital space that facilitates various interactions, such as selling, sharing, learning, or communicating, among its users over the internet.

Idea Generation Process

The systematic approach to brainstorming, exploring, and filtering new concepts or solutions.