A Subsidiary Entity Sold Goods to Its Parent Entity at a Profit

Multiple Choice

A subsidiary entity sold goods to its parent entity at a profit of $10 000.The goods had originally cost the subsidiary $15 000.At reporting date,the parent still held all of the goods.Which of the following adjustments must be included as part of the consolidation entry to eliminate this transaction?

A) CR Inventory $10 000
B) CR Inventory $15 000
C) DR Inventory $25 000
D) DR Inventory $15 000