A Subsidiary Entity Sold Inventory to a Parent Entity for $30

question 20

Essay

A subsidiary entity sold inventory to a parent entity for $30 000. The inventory had previously cost the subsidiary entity $24 000. By reporting date the parent entity had sold 75% of the inventory to a party outside the group. The company tax rate is 30%. The adjustment entry in the consolidation worksheet at reporting date is:

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Definitions:

Personality Disorder Trait Specified

A categorization for personality disorders not fitting established criteria, focusing on specific problematic traits.

DSM Categories

Classifications of mental disorders as organized in the Diagnostic and Statistical Manual of Mental Disorders, a guide used by healthcare professionals.

Validity

The extent to which a test or research measures what it claims to measure accurately and reliably.

Reliability

The consistency and dependability of a measurement or assessment tool over time, indicating the same results under consistent conditions.