_____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. Which of the following accounts is eliminated in consolidation at 12/31/06 as a result of the above transactions?

Question

_____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. Which of the following accounts is eliminated in consolidation at 12/31/06 as a result of the above transactions?
_____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. Which of the following accounts is eliminated in consolidation at 12/31/06 as a result of the above transactions?

Quizplus · Accepted Answer

The Answer of _____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. Which of the following accounts is eliminated in consolidation at 12/31/06 as a result of the above transactions?

_____ in 2005, Palco Sold Inventory Costing $70,000 to Its