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

question 15

Multiple Choice

A subsidiary entity sold goods to its parent entity at a profit of $10 000.The goods had originally cost the subsidiary $15 000.At reporting date,the parent still held all of the goods.Which of the following adjustments must be included as part of the consolidation entry to eliminate this transaction?

• A)CR Inventory $10 000
• B)CR Inventory $15 000
• C)DR Inventory $25 000
• D)DR Inventory $15 000

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Definitions:

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