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

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Definitions:

Functional Strategy

A focused approach that targets specific areas of an organization, such as marketing or finance, designing tactics to achieve the objectives within those domains.

Core Competencies

Essential strengths or skills of an individual or organization that give it an advantage in the market or contribute to its long-term success.

Mission Statement

A formal summary that describes the aims, values, and overall purpose of an organization or individual.

Branding Analysis

The study and evaluation of a brand's position in the marketplace, its strength, and strategies to improve its perception and value.