A subsidiary sold inventory to its parent for $40 000.The inventory originally cost the subsidiary $32 000.At balance sheet date,the parent had 20% of the inventory still on hand.The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:
A) $6400.
B) $1600.
C) $8000.
D) $9600.
Correct Answer:
Verified
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