During the Current Period, Angelo Limited Sold Inventories to Its

Multiple Choice

During the current period, Angelo Limited sold inventories to its parent entity at a profit of $4 000. The inventories cost Angelo Limited $16 000. At balance sheet date the parent had sold 50% of the inventories to an external party. The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:

A) $2 000.
B) $4 000.
C) $12 000.
D) $16 000.