A Subsidiary Sold Inventory to Its Parent for $40 000

question 5

Multiple Choice

A subsidiary sold inventory to its parent for $40 000.The inventory originally cost the subsidiary $32 000.At balance sheet date,the parent had 20% of the inventory still on hand.The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:

• A)$6400.
• B)$1600.
• C)$8000.
• D)$9600.

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Definitions:

Posterior Root Ganglion

A cluster of nerve cell bodies (neurons) located in the dorsal root of the spinal nerve, involved in transmitting sensory information to the central nervous system.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors to the central nervous system.

Sensory Neurons

Neurons that transmit sensory information from the body's periphery towards the central nervous system.

Unipolar

Describes neurons with only one extension from the cell body, often found in sensory neurons conveying touch and pain.