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

question 26

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 the intra-entity transfer of inventory?

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

---

Definitions:

Audio-Visual Aids

Tools and materials combining sound and visual components to enhance the understanding and retention of information during presentations or learning sessions.

Presentation

A means of communication that typically involves speaking to an audience with or without the aid of visual or auditory supports, aiming to inform, persuade, or entertain.

Quality Color Visuals

High-standard visual materials that make effective use of color to enhance clarity, engagement, and aesthetic appeal in communication.

Hue

A color or shade in the spectrum, recognized through the primary properties of colors such as red, blue, or yellow.