Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A subsidiary entity sold goods to its parent entity for $125 000. The inventories originally cost the subsidiary $100 000. At reporting date, the parent

  1. A subsidiary entity sold goods to its parent entity for $125 000. The inventories originally cost the subsidiary $100 000. At reporting date, the parent still held all of the inventories. Which of the following adjustments must be included as part of the consolidation entry to eliminate this transaction?

a. Cr Inventory $100 000

b. Cr Inventory $125 000

c. Dr Inventory $25 000

d. Dr Inventory $225 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What proportion of crime incidents had more than two victims?

Answered: 1 week ago

Question

4. Describe cultural differences that influence perception

Answered: 1 week ago