During the Current Period, a Subsidiary Entity Sold Inventories to a Parent

question 9

Multiple Choice

During the current period, a subsidiary entity sold inventories to a parent entity for $30 000. The inventories had previously cost the subsidiary entity $24 000. By reporting date the parent entity had sold 75% of inventories to a party outside the group. The company tax rate is 30%. The adjustment entry in the consolidation worksheet at reporting date is: