During the Current Period, a Subsidiary Entity Sold Inventories to Its

Multiple Choice

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $4 000. The goods had originally cost the subsidiary $10 000. At the end of the year all the inventories were still on hand. The adjustment entry to deal with this transaction on consolidation would include the following line item:

A) Cr Inventories $4 000.
B) Cr Inventories $6 000.
C) Cr Inventories $10 000.
D) Cr Inventories $14 000.