During the Year Ended 30 June 2017,a Parent Entity Rents

question 28

Multiple Choice

During the year ended 30 June 2017,a parent entity rents a warehouse from a subsidiary entity for $200 000.The company tax rate is 30%.Which of the following is the consolidation adjustment entry needed at reporting date to eliminate the transaction?

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Definitions:

Equilibrium Dollar Price

Refers to the price level at which the supply of dollars in the foreign exchange market is equal to the demand for dollars.

Flexible Exchange Rates

A foreign exchange system where the value of currencies is determined by market forces without direct government intervention.

Libras

A constellation in the zodiac, symbolized by the scales, or in a financial context, might be mistaken for "libra," which refers to a unit of weight or a former currency.

Freely Floating Exchange Rates

Exchange rates that are determined by the supply and demand for currencies in the foreign exchange market without direct intervention by countries' governments.