Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

A subsidiary entity sold inventory to a parent entity for $30 000. The inventory had previously cost the subsidiary entity $24 000. By reporting date, 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 reporting date is:
a. Sales revenueDr 30 000 Cost of salesCr 24 000 InventoryCr 6 000Deferred tax assetDr1 800 Income tax expense Cr 1 800
b. Sales revenueDr 30 000 Cost of salesCr 28 500 InventoryCr 1 500Deferred tax assetDr450 Income tax expense Cr 450
c. Sales revenueDr 22 500 Cost of salesCr 18 000 InventoryCr 4 500Deferred tax assetDr1 350 Income tax expense Cr 1 350
d. Sales revenueDr 7 500 Cost of salesCr 6 000 InventoryCr 1 500Deferred tax assetDr450 Income tax expense Cr 450
e. None of the above

Sagot :

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.