$1$

A subsidiary entity sold inventory to its parent entity at a profit of $$4000.$ The goods had originally cost the subsidiary $$10000.$ At the end of the year all the inventory was still on hand. The consolidation entry for this transaction would include the following line item:

Select one:

a$.$

CR Inventory $$10000$

b$.$

CR Inventory $$4000$

c$.$

CR Inventory $$14000$

d$.$

CR Inventory $$6000$

$2$

n March $2018,$ a subsidiary entity sold inventory to its parent entity for $$22000.$ The goods had originally cost the subsidiary $$20000.$ At $30$ June $2018,$ half of the inventory was still on hand. The adjustment entry for this transaction on consolidation at$30$ June $2018$ would include the following line item:

Select one:

a$.$

CR Inventory $$2000$

b$.$

DR Inventory $$10000$

c$.$

CR Inventory $$1000$

d$.$

CR Inventory $$20000$

$3$

During the year ended $30$ June $2019,$ a parent entity rents a warehouse from a subsidiary entity for $$100000.$ The company tax rate is $30\%.$ The consolidation adjustment entry needed at reporting date is:

Select one:

a$.$

Rent revenue Dr $100000$

Rent expense Cr $100000$

Deferred tax asset Dr $30000$

Income tax expense Cr $30000$

b$.$

Rent revenue Dr $100000$

Rent expense Cr $100000$

c$.$

Rent expense Dr $100000$

Rent revenue Cr $100000$

d$.$

Rent revenue Dr $100000$

Rent expense Cr $100000$

Income tax expense Dr $30000$

Deferred tax liability Cr $30000$

$4$

A subsidiary entity sold inventory to a parent entity for $$30000.$ The inventory had previously cost the subsidiary entity $$24000.$ 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:

Select one:

a$.$

Sales revenue Dr $30000$

Cost of sales Cr $24000$

Inventory Cr $6000$

Deferred tax asset Dr $1800$

Income tax expense Cr $1800$

b$.$

Sales revenue Dr $30000$

Cost of sales Cr $28500$

Inventory Cr $1500$

Deferred tax asset Dr $450$

Income tax expense Cr $450$

c$.$

Sales revenue Dr $22500$

Cost of sales Cr $18000$

Inventory Cr $4500$

Deferred tax asset Dr $1350$

Income tax expense Cr $1350$

d$.$

Sales revenue Dr $7500$

Cost of sales Cr $6000$

Inventory Cr $1500$

Deferred tax asset Dr $450$

Income tax expense Cr $450$

$5$

A Ltd sold an item of plant to B Ltd on $1$ January $2018$ for $$24000.$ The carrying amount of plant was $$20000$ at the time of sale. The plant has a further useful life of$4$ years.

The consolidation entry to reflect the depreciation adjustment for the year ended $30$ June $2018$ will be:

Select one:

a$.$

DR Accumulated depreciation $1000$

CR Depreciation expense $1000$

b$.$

DR Accumulated depreciation $5000$

CR Depreciation expense $5000$

c$.$

DR Accumulated depreciation $500$

CR Depreciation expense $500$

d$.$

DR Depreciation expense $1000$

CR Accumulated depreciation $1000$