For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2017 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise?
A) $ 0.
B) $1,600.
C) $ 300.
D) $ 240.
E) $ 270.

Question

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The unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise is $300. The consolidation worksheet entry to eliminate this amount would be:Debit: Retained Earnings, January 1, 2017 $300Credit: Inventory $300

For Consolidation Purposes, What Amount Would Be Debited to January