Multiple Choice
Tookey Ltd sold inventory items (with a cost of $75 000) to its subsidiary Milky Ltd for $135 000.A third of the inventory items were sold by Milky Ltd to external parties before the financial year end.Ignoring taxes,which of the following statements is correct with respect to this transaction only?
A) Consolidated sales will decrease by $75 000.
B) Consolidated sales will decrease by $95 000.
C) Consolidated profit will decrease by $60 000.
D) Consolidated profit will decrease by $40 000.
Correct Answer:
Verified
Correct Answer:
Verified
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