REFERENCE: Ref.05_04 Walsh Company Sells Inventory to Its Subsidiary,Fisher Company,at a Profit

Multiple Choice

REFERENCE: Ref.05_04
Walsh Company sells inventory to its subsidiary,Fisher Company,at a profit during 2009.Walsh uses the equity method to account for its investment in Fisher.
-With regard to the intercompany sale,which of the following choices would be a credit entry in the consolidated worksheet for 2009?

A) Retained earnings.
B) Cost of goods sold.
C) Inventory.
D) Investment Fisher Company.
E) Additional paid-in capital.