Angelo Limited Sold Inventory to Its Parent Entity at a Profit

question 24

Multiple Choice

Angelo Limited sold inventory to its parent entity at a profit of $4 000.The inventory cost Angelo Limited $16 000.At balance sheet date 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:

Stigmatized

Negatively evaluated because of a marker that distinguishes them from others.

Negatively Evaluated

Being assessed or perceived in an unfavorable or disapproving manner based on certain criteria or standards.

Perceived Harmfulness

The extent to which an individual believes a substance, behavior, or activity is capable of causing harm or risk.

Illegal Drug

Substances whose production, sale, or possession are prohibited by law due to their potential harm to individuals and society.