1 out of 1 points A Ltd owns 100 percent of B Ltd. B Ltd owns...

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1 out of 1 points A Ltd owns 100 percent of B Ltd. B Ltd owns 100 percent of C Ltd. During the financial year B Ltd sells inventory to A Ltd at a sale price of $200,000. The cost of inventory is $150,000. A Ltd sold the same inventory to C Ltd for $250,000 with no additional costs. At year end, fifty per cent of inventory is held by C Ltd. The sale value of inventory in the consolidated entity is Question 2 1 out of 1 points A reason for eliminating over valuation of inventory in an intra-group transaction occurred in the current period is that inventory must be stated at the lower of cost and net realizable value. Question 3 1 out of 1 points The consolidated journal entry presented for intagroup inventory sold by Subsidiary Ltd to Parent Ltd in the previous year but was unsold and brought in to the current period was as follows. Debit Opening retained earnings $10,000 Credit Cost of goods sold $10,000 The Subsidiary Ltd must record this transaction in the current period in its ledger. Question 4 On 1 July 2016, Parent Ltd acquired 90% shares of Subsidiary Ltd. Both are tax paying entities at 30% tax rate. Which of the following is correct about the consolidated journal entries? 1 out of 1 points 1 out of 1 points A Ltd owns 100 percent of B Ltd. B Ltd owns 100 percent of C Ltd. During the financial year B Ltd sells inventory to A Ltd at a sale price of $200,000. The cost of inventory is $150,000. A Ltd sold the same inventory to C Ltd for $250,000 with no additional costs. At year end, fifty per cent of inventory is held by C Ltd. The sale value of inventory in the consolidated entity is Question 2 1 out of 1 points A reason for eliminating over valuation of inventory in an intra-group transaction occurred in the current period is that inventory must be stated at the lower of cost and net realizable value. Question 3 1 out of 1 points The consolidated journal entry presented for intagroup inventory sold by Subsidiary Ltd to Parent Ltd in the previous year but was unsold and brought in to the current period was as follows. Debit Opening retained earnings $10,000 Credit Cost of goods sold $10,000 The Subsidiary Ltd must record this transaction in the current period in its ledger. Question 4 On 1 July 2016, Parent Ltd acquired 90% shares of Subsidiary Ltd. Both are tax paying entities at 30% tax rate. Which of the following is correct about the consolidated journal entries? 1 out of 1 points

Answer rating: 100% (QA)

Answer to Question 1 The sale value of inventory in the consolidated entity is 250000 This is becaus... View the full answer