Walsh Company Sells Inventory to Its Subsidiary, Fisher Company, at a Profit

question 69

Multiple Choice

Walsh Company sells inventory to its subsidiary, Fisher Company, at a profit during 2010. One-third of the inventory is sold by Walsh uses the equity method to account for its investment in Fisher. In the consolidation worksheet for 2010, which of the following choices would be a debit entry to eliminate unrealized intra-entity gross profit with regard to the 2010 intra-entity sales?

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

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Definitions:

Behavior Similarities

Patterns or traits in actions or responses that are alike among different individuals or groups.

Oppression

The systematic and unjust treatment or control of individuals or groups by others who are more powerful, often leading to the disadvantaged group's marginalization.

Social Group Membership

The state of belonging to a group that shares common interests, purposes, or identities, influencing an individual's social identity and interactions.

Institutional Levels

Refers to the various stages or echelons of organization within institutions, often classified by hierarchy or complexity.