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1) In 2013, company A sold inventory costing $100 to its fully-owned subsidiary company B for $150. The entire inventory remains with company B at the end of 2013. What journal entry should be recorded (*G) at the beginning of 2014 to eliminate the gain from intra-entity transaction? (assuming that the parent uses the equity method).

2) From the above question, what if only half of the inventory from the intra-entity transaction remain with company B at the end of 2013?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797480

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