8Corporate accounting

Question 8 Not yet answered Marked out of 1.00 Flag question On 1 January 2019, ABC Ltd acquired all the issued shares in DEF Ltd. At that date, the inventory of DEF Ltd had a fair value of $20 000 more than its carrying amount. By 30 June 2019, 75% of the inventory was sold to an entity outside of the group. The business combination valuation consolidation adjustment for inventories as at 30 June 2020 will include: O a. a credit to inventories of $15 000 and a debit to cost of sales $5 000. O b. a debit to inventories of $15 000 and a debit to cost of sales of $5 000. O c. a debit to cost of sales of $5 000. O d. a debit to inventories of $15 000