Quartermain Limited has the following investments: Christian Limited - a 100 per cent owned subsidiary
Hudson Limited - a 75 per cent owned subsidiary
Lane Limited - a 40 per cent owned associate
Daicos Limited - a 25 per cent owned associate
Lane Limited sells inventory,which cost Lane Limited $50,000 to acquire,to Daicos Limited,at a mark up of 40 per cent.Three-quarters of the inventory was sold by the end of the period.What is the amount to be eliminated in the consolidated accounts of Quartermain Group Limited?
A) $500.
B) $1,500.
C) $2,000.
D) $2,500.
E) $5,000.
Correct Answer:
Verified
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