During the Current Period, Ambrose Limited Sold Inventories to Its

Multiple Choice

During the current period, Ambrose Limited sold inventories to its parent entity at a profit of $12 000. The inventories cost Ambrose Limited $36 000. At balance sheet date the parent had sold 50% of the inventories to an external party. The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:

A) $1 000.
B) $18 000.
C) $6 000.
D) $36 000.