A Subsidiary Sold a Quantity of Inventory to Its Parent

question 14

Multiple Choice

A subsidiary sold a quantity of inventory to its parent entity at a before-tax profit of $12 000.The original cost of the inventory to the subsidiary was $41 000.At the end of the year all of the inventory was still on hand.The consolidation adjustment entry to eliminate this transaction will include which of the following line items?

• A)Cr Inventory $12 000
• B)Cr Inventory $53 000
• C)Cr Inventory $41 000
• D)Cr Inventory $29 000

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