A Subsidiary Entity Sold Inventory to Its Parent Entity at a Profit

question 10

Multiple Choice

A subsidiary entity sold inventory to its parent entity at a profit of $4 000.The goods had originally cost the subsidiary $10 000.At the end of the year all the inventory was still on hand.The adjustment entry to deal with this transaction on consolidation would include the following line item:

• A)CR Inventory $4 000
• B)CR Inventory $6 000
• C)CR Inventory $10 000 d,CR Inventory $14 000.

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Definitions:

Mood Elevators

Substances, often medications, that can improve emotional state and combat depression.

Atypical Neuroleptics

A newer class of antipsychotic drugs that tend to cause fewer traditional side effects of older antipsychotics, often used in schizophrenia treatment.

Serotonin

A neurotransmitter in the brain that plays a key role in stabilizing mood, feelings of well-being, and happiness.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.