A Subsidiary Sold Inventory to Its Parent for $60 000

question 9

Multiple Choice

A subsidiary sold inventory to its parent for $60 000.The inventory had previously cost the subsidiary $48 000.By reporting date,the parent had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.Which of the following are the adjustment entries in the consolidation worksheet at reporting date?

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Definitions:

Algebraic Expression

A mathematical phrase that can include numbers, variables, and operation symbols, but does not contain an equal sign.

Verbal Phrase

A verbal phrase in mathematics refers to a phrase that describes an operation or relation between quantities or variables in words rather than symbols or equations.

Verbal Description

An explanation or representation of a mathematical concept or problem using words.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain numbers, variables, and operation symbols but does not have an equality sign.