A Parent Company Sells Some Inventory to Its Subsidiary for $5000.The

Multiple Choice

A parent company sells some inventory to its subsidiary for $5000.The original cost of the inventory to the parent was $4000.The economic entity only makes a profit when:

A) the subsidiary resells the inventory back to the parent
B) the subsidiary resells the inventory outside the group
C) the parent sells the inventory to the subsidiary
D) none of the above