Question: During 2 0 2 0 , Odyssey Co . sold inventory to its wholly - owned subsidiary, Civic Co . The inventory cost $ 4

During 2020, Odyssey Co. sold inventory to its wholly-owned subsidiary, Civic Co. The inventory cost $40,000 and was sold to Lord for $58,000. For
consolidation reporting purposes, when is the $18,000 intra-entity gross profit recognized?
Multiple Choice
When Odyssey sold the goods to Civic.
When Civic receives the goods.
When Civic pays Odyssey for the goods.
When goods are transferred to a third party by Civic.
No gain can be recognized since the transfer was between related parties.
During 2020, Odyssey Co. sold inventory to its wholly-owned subsidiary, Civic

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