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:

Caloric Intake

The total number of calories consumed through food and drink in a given period, critical for maintaining body weight and energy balance.

Slough

Dead tissue that is shed or removed from the surface of the skin, especially in a wound healing process, presenting as a feature of some infections or conditions.

Hydrocolloid Dressing

A type of bandage made from gel-forming agents that provide a moist and insulated healing environment, often used for wounds.

Wet-to-Dry Dressings

A type of wound care involving the application of a moist wound dressing that is allowed to dry before removal, aiding in debridement.