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Problem 1: The cost of inventories to subsidiary was $125 000. A subsidiary sold goods to its parent entity for $150 000. At reporting date, the parent still held all of the inventories. Which of the following adjustments must be included as part of the consolidation entry to eliminate this transaction?
Select one:
a. Cr Inventory $125 000b. Dr Inventory $275 000c. Cr Inventory $150 000d. Dr Inventory $25 000
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