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 goods are transferred to a third party by Civic.
When Civic pays Odyssey for the goods.
When Odyssey sold the goods to Civic.
When Civic receives the goods.
During 2020, Odyssey Co. sold inventory to its wholly-owned subsidiary, Civic

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