Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Ltd for $58,000. At the end of the financial year, being 30 june 2021, a quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct? O Consolidated sales to be eliminated by $50,000 O Consolidated sales to be added by $58,000 O Consolidated profit to be eliminated by $6,000 O Consolidated profit to be eliminated by $8,000 Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Ltd for $58,000. At the end of the financial year, being 30 june 2021, a quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct? O Consolidated sales to be eliminated by $50,000 O Consolidated sales to be added by $58,000 O Consolidated profit to be eliminated by $6,000 O Consolidated profit to be eliminated by $8,000
Expert Answer:
Answer rating: 100% (QA)
SOLUTION Concept In consolidation of books in case of intragroup t... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
We are analyzing 2 products product X and product Y. Product X requires 4 Part As and 3Part Bs. Product Y requires 3 Part As and 2 Part Bs. The standard cost for Part A is $24 per unit. The standard...
-
We are analyzing 2 products product Hamburgers(HB)and Double Deckers(DD) Product HB requires 1 Patty (P) and 2 Buns (B) Product Y requires 2 Patties (P) and 3 Buns B) The standard cost for P is $1...
-
Standard direct labor hours budgeted by Turner Company for February production were 2,000. Factory overhead at that level was budgeted at $10,000, of which $3,000 is variable. Actual direct labor...
-
Use any method to evaluate the limit or show that it does not exist. lim (x,y) (0,0) x - y x + y
-
Exercise 10.5.1 presented the following problem: Patients with painful knee osteoarthritis were randomly assigned in a clinical trial to one of five treatments: glucosamine, chondroitin, both,...
-
You have extracted a trial balance and drawn up accounts for the year ended 31 December 20X7. There was a shortage of 78 on the credit side of the trial balance, a suspense account being opened for...
-
Bert C. Roberts Jr. was chairman of WorldComs board of directors. Immediately before that, he had been chairman of MCI, which WorldCom acquired on September 14, 1998, in a transaction valued at...
-
Navajo Companys financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2012,...
-
3. (5 Marks) An engineering project requires $25,000 as first cost and has a planning horizon of six years. Operating costs are $2,300 per year, and expected annual revenue is $9,200 (both real...
-
We will be working with a company called Global Bike Inc., (GBI). Information regarding GBI follows. Company History Global Bike Inc. has a pragmatic design philosophy that comes from its deep roots...
-
You are talking to investors about opening up a Pet Supply Store. Explain the management accounting methods you can use to determine your costing strategy, evaluate your financial information, and...
-
To what extent has Google's strategy focused upon its resources and capabilities rather than specific customer needs?
-
It takes Ben 2 days to write 5 reports, and it takes Kato 3 days to writo 5 reports. Ben's rate, in reports per day, is how much greater than Kate's rate?
-
Should all organizations empower employees to the extent that Nordstrom's, Ritz-Carlton hotels, and Google empower their employees? Why or why not?
-
The value of a business's fixed asset life ratio has increased in each of the last three years. What conclusion could you draw from this?
-
Can offline stores drive online Please discuss the following questions: Which factors should we consider while choosing a location for physical stores? What does a physical store do for the shopping...
-
X,-m, For the rate 1/3 convolutional encoder, the outputs are expressed by modulo-2 addition as X = (m XOR m) XOR m, X3 = m XOR m. Where X, are output bits, m is the input bit, and m, are the encoder...
-
The process of collaborative goal setting by a manager and subordinate, the extent to which goals are accomplished is a major factor in evaluating and rewarding the subordinate's performance. It is...
-
Denny Daniels is production manager of the FerrousTec Division of UVA Inc. FerrousTec has limited contact with outside customers and has no sales staff. Most of its customers are other divisions of...
-
The factory overhead control account has a credit balance at the end of the period. Was factory overhead over- or under applied?
-
The Thompson Mining Corporation has producing departments A and B, and service departments C, D, E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's...
-
Are there any activities in a family that you believe should be allocated by a market? What characteristics do those activities have?
-
What is the difference between socialism in theory and socialism in practice?
-
Into what three sectors are market economies generally broken up?
Study smarter with the SolutionInn App