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:

NACE Definition

The statistical classification of economic activities in the European Community, providing a common framework for the collection and analysis of economic data.

Monetary Compensation

Financial payment given to employees for their labor or service.

Transformative Learning

A process of profound change in perspective, leading to a more inclusive, discriminating, and integrative understanding of one's experiences.

Transformative Learning

An educational approach fostering profound personal or societal change through critical reflection and reassessment of beliefs and values.