Multiple Choice
What is the amount of unrealised profit that needs to be eliminated at the end of the period,in the following situation,where Barker Limited is the parent of Corbett Limited? (Ignore the tax effect) Barker purchases 500 units of inventory for $20 each.Barker sells this entire inventory to Corbett at a mark up of 50 per cent.At the end of the period,100 units are on hand.
A) $1,000.
B) $2,000.
C) $3,000.
D) $5,000.
E) $10,000.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Intragroup profits are eliminated in consolidation to
Q16: Lilo Ltd sells inventory items to its
Q17: Question 1: Transactions between entities that form
Q18: If we simply aggregate the sales of
Q19: Dividends paid between entities in the group
Q22: A non-current asset was sold by Subsidiary
Q23: The fact that consolidation worksheets start "afresh"
Q24: A non-current asset was sold by Subsidiary
Q25: AASB 127 "Consolidated and Separate Financial Statements"
Q38: Parent Ltd sells inventories to Child Ltd