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

---

Definitions:

Individual's Involvement

The degree to which a person actively engages in and commits to a particular task, project, or organization.

Diversity Competency

The ability to understand, appreciate, and interact effectively with people from different cultures, backgrounds, and perspectives.

Lockheed Martin

A global aerospace, defense, security, and advanced technologies company with worldwide interests.

Diverse Environment

A setting characterized by the presence of individuals from a wide range of backgrounds, perspectives, and experiences.