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

question 71

Multiple Choice

Strickland Company sells inventory to its parent, Carter Company, at a profit during 2012. One-third of the inventory is sold by Carter in 2012.
In the consolidation worksheet for 2012, 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:

Violent Crimes

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Radically Impulsive

Characterized by sudden and unreflective actions or decisions, often without consideration of consequences.

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The process of evaluating and analyzing public policies to understand their impact, effectiveness, and potential improvements.

Plusses And Minuses

An expression denoting the evaluation of the positive and negative aspects of a situation or decision.