For Consolidation Purposes, What Amount Would Be Debited to January

question 123

Multiple Choice

For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2010 consolidation worksheet entry with regard to the unrealized gross profit of the 2010 intra-entity transfer of merchandise?

• A) $0.
• B) $1,600.
• C) $300.
• D) $240.
• E) $270.

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Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares in the articles of incorporation.

Paid-In Capital

The total amount of money that shareholders have invested in a company through the purchase of its stock, including both common and preferred shares.

Corporate Charter

A formal document that establishes a corporation's existence, outlining its structure, objectives, and regulations.

Par Value

The face value of a bond or stock, as stated on the certificate; in stock, it is a nominal value unrelated to market value.