ACCT 2542-A parent sold some inventory to its subsidiary
Question # 00391444
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Updated on: 09/21/2016 03:50 AM Due on: 09/21/2016
A parent sold some inventory to its subsidiary for $55 000. The goods had originally cost the parent $40 000. At the end of the year all of the inventory was still on hand. The consolidation adjustment entry to eliminate this transaction will include the following line items?
| I. | Cr | Cost of sales | $15 000 |
| II. | Cr | Cost of sales | $40 000 |
| III. | Cr | Cost of sales | $95 000 |
| IV. | Cr | Cost of sales | $55 000 |
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Rating:
/5
Solution: ACCT 2542-A parent sold some inventory to its subsidiary