A Parent Sold Some Inventories to Its Subsidiary for $55

Multiple Choice

A parent sold some inventories to its subsidiary for $55 000. The goods had originally cost the parent $40 000. At the end of the year all of the inventories were still on hand. The consolidation adjustment entry to eliminate this transaction will include the following line items?

A) Cr Cost of sales $15 000
B) Cr Cost of sales $40 000
C) Cr Cost of sales $95 000
D) Cr Cost of sales $55 000