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

question 26

Multiple Choice

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $4 000. The goods had originally cost the subsidiary $10 000. At the end of the year all the inventories were still on hand. The adjustment entry to deal with this transaction on consolidation would include the following line item:

• A) Cr Inventories $4 000.
• B) Cr Inventories $6 000.
• C) Cr Inventories $10 000.
• D) Cr Inventories $14 000.

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Definitions:

Immigration

The process of permanently relocating to a country that is not one's own.

Regional Trading

The exchange of goods and services within a specific geographic area, promoting economic cooperation among neighboring countries.

Trading Bloc Agreements

These are agreements between groups of countries, often geographically proximate, to promote trade among themselves by reducing trade barriers like tariffs and import quotas.

Trade Restrictions

Measures implemented by governments to control the import and export of goods and services, often to protect domestic industries and jobs.