A Parent Sold Some Inventory to Its Subsidiary for $55

question 43

Multiple Choice

A parent sold some inventory to its subsidiary for $55 000.The goods had originally cost the parent $40 000.At the end of the year all of the inventory was still on hand.The consolidation adjustment entry to eliminate this transaction will include the following line items?

• A)Cr Cost of sales $15 000
• B)Cr Cost of sales $40 000
• C)Cr Cost of sales $95 000
• D)Cr Cost of sales $55 000

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Definitions:

Ethics Competency

The ability to recognize ethical dilemmas, make decisions that reflect moral principles, and behave in a manner consistent with good ethical practices.

Hypothetical Situations

Scenarios or conditions that are imagined or theorized to understand their potential implications or to plan for possible future events.

College Costs

The expenses associated with attending a college or university, which may include tuition, fees, room, board, books, and other related costs.

McClelland

A psychologist known for his work on motivation, particularly the Theory of Needs focusing on achievement, power, and affiliation.