45pits Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50.000 to Hani Lid for S58.000 Athe end of the financial yea beinguneLA quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct? O Consolidated sales to be eliminaled by $s0.000 o Consolidated sales to be added by $58,000 O Consolidated profit to be eliminated by $6,000 o Consolidated profit to be eliminated by $8.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Lid for $SE.000. At the end of the financial year, beingjune 24
quarter of the inventories were sold by Hani Ltd to entities external to the group.
In relation to this intragroup transaction, which of the following statement is correct?
O Consolidated sales to be eliminated by $50,000
O Consolidated sales to be added by $58,000
O Consolidated profit to be oliminated by $6,000
O Consolidated profit to be eliminated by $8,000
Transcribed Image Text:Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Lid for $SE.000. At the end of the financial year, beingjune 24 quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct? O Consolidated sales to be eliminated by $50,000 O Consolidated sales to be added by $58,000 O Consolidated profit to be oliminated by $6,000 O Consolidated profit to be eliminated by $8,000
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