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

question 47

Multiple Choice

During the year ended 30 June 2014,a subsidiary sold inventory to a parent for $90 000.The inventory had previously cost the subsidiary entity $72 000.By 30 June 2014 the parent had sold 75% of the inventory to a party outside the group.The remaining inventory was sold externally in July 2014.The company tax rate is 30%.Which of the following is the adjustment entry in the consolidation worksheet at 30 June 2015?

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Definitions:

Foreign Exchange Loss

A loss that occurs when the value of a foreign currency declines in relation to the domestic currency, affecting transactions involving foreign currencies.

Merchandise

Goods that are bought and sold by businesses in the normal course of operations.

Foreign Exchange Loss

A decrease in domestic currency value resulting from transactions denominated in a foreign currency, often due to fluctuating exchange rates.

Ruble Receivable

An amount expected to be received denominated in Russian Rubles, typically from transactions or contracts.