During the Year Ended 30 June 2014,a Subsidiary Sold Inventory

Multiple Choice

During the year ended 30 June 2014,a subsidiary sold inventory to its parent at a before-tax profit of $20 000.The inventory originally cost the subsidiary $87 000.At 30 June 2014 all the inventory was still on hand and it was sold to an external party in July 2014.Ignoring tax effects,the consolidation adjustment entry to eliminate this transaction during the year ended 30 June 2015 would include which of the following line items?

A) Dr Cost of sales $20 000
B) Cr Cost of sales $20 000
C) Dr Cost of sales $87 000
D) Cr Cost of sales $87 000