Question
Thurston Limited sold inventory to its parent entity, Cowboys Ltd, at a profit of $8000. The inventory originally cost Thurston Limited $32000. At balance sheet
Thurston Limited sold inventory to its parent entity, Cowboys Ltd, at a profit of $8000. The inventory originally cost Thurston Limited $32000. At balance sheet date, Cowboys Limited had sold 90% of the inventory to an external party. The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
