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A Subsidiary Entity Sold Inventory to a Parent Entity for $30

Question 2

Multiple Choice

A subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By reporting date the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at reporting date is:


A) A subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By reporting date the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at reporting date is: A) B) C) D)
B) A subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By reporting date the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at reporting date is: A) B) C) D)
C) A subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By reporting date the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at reporting date is: A) B) C) D)
D) A subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By reporting date the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at reporting date is: A) B) C) D)

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