In May 2017, a Parent Entity Sold Inventories to a Subsidiary

question 13

Multiple Choice

In May 2017, a parent entity sold inventories to a subsidiary entity for $30 000. The inventories had previously cost the parent entity $24 000. The entire inventories are still held by the subsidiary at reporting date, 30 June 2017. Ignoring tax effects, the adjustment entry in the consolidation worksheet at reporting date is:

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Definitions:

Thoughts

Mental processes or ideas that arise within the mind of an individual, encompassing beliefs, opinions, and reflections.

Sociability

The extent to which an individual seeks social interactions and is comfortable in social settings.

Sincere Interest

A genuine and earnest concern or curiosity in a subject or person.

Versatility

The ability to adapt or be effective in different functions, roles, or activities.