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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Definitions:

Temperature Range

The span of temperature from minimum to maximum that is considered acceptable or safe for a specific process, environment, or organism.

Mercury Thermometers

Instruments used for measuring temperature, containing mercury that expands or contracts in response to temperature changes.

Electronic Thermometers

Devices that measure body temperature using electronic sensors, offering a mercury-free alternative to traditional thermometers.

Medical Record

The comprehensive documentation of a patient's medical history, treatment plans, diagnoses, medications, and other health information.