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Aladdin Ltd Sells Inventory for a Profit to Its Subsidiary,Jasmine

Question 46

Multiple Choice

Aladdin Ltd sells inventory for a profit to its subsidiary,Jasmine Ltd,to be used as machinery in Jasmine Ltd's production process.The consolidation worksheet of Aladdin Ltd with respect to this transaction only should ?not include .....:


A) a debit to sales.
B) a credit to cost of sales.
C) a credit to inventories.
D) a credit to machinery.
E) None of the given answers.

Correct Answer:

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