Global Corporation acquired 85 percent of Local Company's voting shares of stock in 20X7

Subject:AccountingPrice:3.87 Bought7

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Global Corporation acquired 85 percent of Local Company's voting shares of stock in 20X7. During 20X8, Global purchased 50,000 picture tubes for $15 each and sold 28,000 of them to Local for $20 each. Local sold all of the units to unrelated entities prior to December 31, 20X8, for $30 each. Both companies use perpetual inventory systems.

 

Which worksheet eliminating entry is needed in preparing consolidated financial statements for 20X8 to remove all effects of the intercompany sale?

 

Option A

Option B

Option C

Option D