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During the Year Ended 30 June 20X7 a Subsidiary Entity

Question 6

Multiple Choice

During the year ended 30 June 20X7 a subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By 30 June 20X7 the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at 30 June 20X8 is:


A) During the year ended 30 June 20X7 a subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By 30 June 20X7 the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at 30 June 20X8 is: A) B) C) D)
B) During the year ended 30 June 20X7 a subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By 30 June 20X7 the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at 30 June 20X8 is: A) B) C) D)
C) During the year ended 30 June 20X7 a subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By 30 June 20X7 the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at 30 June 20X8 is: A) B) C) D)
D) During the year ended 30 June 20X7 a subsidiary entity sold inventory to a parent entity for $30 000.The inventory had previously cost the subsidiary entity $24 000.By 30 June 20X7 the parent entity had sold 75% of the inventory to a party outside the group.The company tax rate is 30%.The adjustment entry in the consolidation worksheet at 30 June 20X8 is: A) B) C) D)

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