6. A subsidiary sold inventories to its parent in year 1 at a before-tax profit...

90.2K

Verified Solution

Question

Accounting

6. A subsidiary sold inventories to its parent in year 1 at a before-tax profit of $45,000. At balance sheet date, the parent had not sold the inventories to an external party. The company tax rate is 30%. The year 1 consolidation worksheet will contain which of the following adjustment entries for inventories?

Select one:

Cr Inventories $31 500

Cr Inventories $45 000

Dr Inventories $45 000

Dr Inventories $31 500

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students