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

question 71

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 credit 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:

Prostatic Urethra

Part of the male urethra, approximately 2.5 cm in length, that passes through the prostate gland.

Semen

Penile ejaculate; thick, yellowish white, viscous fluid containing spermatozoa and secretions of the testes, seminal vesicles, prostate, and bulbourethral glands.

Emission

Discharge; accumulation of semen in the urethra prior to ejaculation. A nocturnal emission is a discharge of semen while asleep.

Ejaculation

The discharge of semen from the male reproductive tract as a result of sexual arousal.