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

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The consolidation adjustment entry would include the following line item:

A) CR Inventories $30 000.
B) CR Inventories $24 000.
C) CR Inventories $18 000.
D) CR Inventories $6 000.

Correct Answer:

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