During the Year Ended 30 June 2017, a Subsidiary Entity

question 14

Multiple Choice

During the year ended 30 June 2017, a subsidiary entity sold inventories to a parent entity for $30 000. The inventories had previously cost the subsidiary entity $24 000. By 30 June 2017 the parent entity had sold 75% of the inventories to a party outside the group. The company tax rate is 30%. The adjustment entry in the consolidation worksheet at 30 June 2018 is:

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Definitions:

Problem-Solving Approach

A systematic process that involves identifying a problem, developing possible solutions, and implementing a solution.

Engagement

In a social context, the process of being actively involved or committed to an activity, cause, or interaction.

Assessment

is the systematic evaluation or analysis of a project, person, or process to determine its performance, skills, or needs.