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A Subsidiary Sold Inventories to Its Parent for $60 000

Question 19

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A subsidiary sold inventories to its parent for $60 000. The inventories had previously cost the subsidiary $48 000. By reporting date, the parent had sold 75% of the inventories to a party outside the group. The company tax rate is 30%. Which of the following are the adjustment entries in the consolidation worksheet at reporting date? A subsidiary sold inventories to its parent for $60 000. The inventories had previously cost the subsidiary $48 000. By reporting date, the parent had sold 75% of the inventories to a party outside the group. The company tax rate is 30%. Which of the following are the adjustment entries in the consolidation worksheet at reporting date?

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