Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells...

 

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Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells one-third of the inventory in 2020. In the consolidation worksheet for 2021, assuming Carter uses the initial value method of accounting for its investment in Strickland, which of the following accounts would be credited to defer recognition of intra-entity gross profit with regard to the 2020 intra entity transfers? Multiple Choice Retained earnings. Cost of goods sold. O inventory. Investment in Strickland Company Sales. Strickland Company sells inventory to its parent, Carter Company, at a profit during 2020. Carter sells one-third of the inventory in 2020. In the consolidation worksheet for 2021, assuming Carter uses the initial value method of accounting for its investment in Strickland, which of the following accounts would be credited to defer recognition of intra-entity gross profit with regard to the 2020 intra entity transfers? Multiple Choice Retained earnings. Cost of goods sold. O inventory. Investment in Strickland Company Sales.

Answer rating: 100% (QA)

ANSWER Retined ernings Retined Ernings RE re the umulted rtin f businesss rfits tht re nt distribute... View the full answer