Parent Corporation Owns 90 Percent of Subsidiary 1 Company's Stock

question 37

Multiple Choice

Parent Corporation owns 90 percent of Subsidiary 1 Company's stock and 75 percent of Subsidiary 2 Company's stock.During 20X8,Parent sold inventory purchased in 20X7 for $48,000 to Subsidiary 1 for $60,000.Subsidiary 1 then sold the inventory at its cost of $60,000 to Subsidiary 2.Prior to December 31,20X8,Subsidiary 2 sold $45,000 of inventory to a nonaffiliate for $67,000 and held $15,000 in inventory at December 31,20X8.
-Based on the information given above,what amount should be reported in the December 31,20X8,consolidated balance sheet as inventory?

• A)$36,000
• B)$12,000
• C)$15,000
• D)$28,000

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Definitions:

Computer-Mediated Communication

Communication between people through the use of computers and the internet, encompassing emails, chats, social media, and other digital platforms.

Trust Development

The process by which individuals build confidence in each other's intentions and abilities, crucial for effective collaboration and teamwork.

Computer-Mediated Groups

Groups that interact through digital platforms rather than face-to-face, often using the internet or other network technologies for communication.

Face-To-Face Groups

Small groups of individuals who interact directly and personally with each other, often for the purpose of discussion, problem-solving, or decision-making.