Angelo Limited Sold Inventory to Its Parent Entity at a Profit

question 9

Multiple Choice

Angelo Limited sold inventory to its parent entity at a profit of $4 000. The inventory cost Angelo Limited $16 000. At the end of the reporting period the parent had sold 50% of the inventory to an external party. The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:

• A) $2 000
• B) $4 000
• C) $12 000
• D) $16 000

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Definitions:

Skin Integrity Diagnosis

The process of examining the condition of the skin to identify issues such as infections, injuries, or diseases affecting the skin's health and integrity.

Wound Healing

The physiological process by which the body repairs tissue damage, involving stages of inflammation, proliferation, and maturation.

Nursing Diagnosis

A clinical judgment about individual, family, or community experiences/responses to actual or potential health problems/life processes.

Medical Diagnosis

The process of determining which disease or condition explains a person's symptoms and signs, typically involving various diagnostic tests and evaluations.