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_____ in 2006, Semco Resold for $40,000 Inventory That It

Question 26

Multiple Choice

_____ In 2006, Semco resold for $40,000 inventory that it had acquired in 2005 from its parent company, Pemco, for $32,000. Pemco's cost was $25,000. In consolidation at the end of 2006, which of the following accounts is credited in consolidation?


A) Intercompany Cost of Sales for $32,000.
B) Inventory for $32,000.
C) Cost of Sales for $7,000.
D) Cost of Sales for $8,000.
E) None of the above.

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