medium · Financial Accounting accounting-cycle-financial-statements
A parent company owns 100% of a subsidiary. During the year, the parent sells inventory to the subsidiary for $200,000 (costing the parent $150,000). At year-end, the subsidiary still holds 50% of this inventory.
What is the total reduction to consolidated inventory on the balance sheet?
- $75,000
- $50,000
- $25,000
- $100,000
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