Which of the following intragroup transactions do not affect the carrying amounts of assets and liabilities?
A) Management fees paid
B) Sale of plant at a profit
C) Sale of land for an amount greater than its carrying amount
D) Sale of inventories at a loss

Question

Quizplus · Accepted Answer

Management fees paid are simply a transfer of cash within the group and do not impact the carrying amounts of assets and liabilities. The other options involve the sale of assets which would either result in a profit or loss and impact the carrying amounts.

Which of the Following Intragroup Transactions Do Not Affect the Carrying