Question
A subsidiary sold inventory to its parent entity for $40,000. The inventory originally cost the subsidiary $32,000. At balance sheet date, the parent had 20%
A subsidiary sold inventory to its parent entity 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 will eliminate unrealised profit amoun ting to: Select one: A. $1600. B. $9600. C. $8000. D. $6400.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Accounting Volume 1 Financial Accounting
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
1st Edition
1593995946, 978-1593995942
