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

question 25

Multiple Choice

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $8 000. The goods had originally cost the subsidiary $20 000. 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 Cost of sales $28 000.
• B) Cr Cost of sales $20 000.
• C) Cr Cost of sales $12 000.
• D) Cr Cost of sales $8 000.

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Definitions:

Word Root

Word Root is the fundamental part of a word, typically derived from Latin or Greek, that carries the primary meaning and can be modified by prefixes and suffixes.

-Ectomy

A suffix meaning the surgical removal of a specified part of the body.

Surgical Removal

A medical procedure that involves the excision of tissue, organs, or other bodily structures from the patient's body.

Vowel

A category of phonetic sounds produced without any significant constriction or blockage of airflow in the vocal tract.