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:

Teratogens

Environmental agents that can cause deviations from normal development and can lead to abnormalities or death.

Prenatal Development

The process of growth and development within the womb, from conception to the birth of a child.

Cleavage

The process of cell division in a developing embryo where a single fertilized cell divides into multiple, smaller cells.

Ossification

The process by which bone is formed, renewed, and repaired in the body.