During the Year Ended 30 June 2014,a Subsidiary Sold Inventory

question 27

Multiple Choice

During the year ended 30 June 2014,a subsidiary sold inventory to its parent at a before-tax profit of $20 000.The inventory originally cost the subsidiary $87 000.At 30 June 2014 all the inventory was still on hand and it was sold to an external party in July 2014.Ignoring tax effects,the consolidation adjustment entry to eliminate this transaction during the year ended 30 June 2015 would include which of the following line items?

• A)Dr Cost of sales $20 000
• B)Cr Cost of sales $20 000
• C)Dr Cost of sales $87 000
• D)Cr Cost of sales $87 000

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Definitions:

Discrete Random

Refers to a type of random variable that can take on a countable number of distinct values, such as whole numbers, but not fractions.

Number Of Customers

The total count of individuals or entities that purchase or use a company's products or services.

Gender Of Customers

A demographic variable referring to the classification of customers based on their gender identity, often used in market research for segmentation and analysis.

Default

A failure to fulfill an obligation, especially failure to meet a financial obligation like a loan repayment.