REFERENCE: Ref.05_03 Strickland Company Sells Inventory to Its Parent,Carter Company,at a Profit

question 103

Multiple Choice

REFERENCE: Ref.05_03
Strickland Company sells inventory to its parent,Carter Company,at a profit during 2009.Select the correct answer.
-With regard to the intercompany sale,which of the following choices would be a credit entry in the consolidated worksheet for 2009?

• A)Retained earnings.
• B)Cost of goods sold.
• C)Inventory.
• D)Investment Strickland Company.
• E)Additional paid-in capital.

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