Strickland Company Sells Inventory to Its Parent, Carter Company, at a Profit

question 102

Multiple Choice

Strickland Company sells inventory to its parent, Carter Company, at a profit during 2010. One-third of the inventory is sold by Carter in 2010. In the consolidation worksheet for 2010, which of the following choices would be a credit entry to eliminate the intra-entity transfer of inventory?

• A) Retained earnings.
• B) Cost of goods sold.
• C) Inventory.
• D) Investment in Strickland Company.
• E) Sales.

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Definitions:

Physical Therapy

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Confidence Interval

A statistical range, with a certain probability, that is likely to contain the value of an unknown parameter.

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