Tookey Ltd sold inventory items (with a cost of $75 000) to its parent Milky Ltd for $135 000. One third of the inventory items were sold by Milky Ltd to external parties before the financial year end. Ignoring taxes, which of the following statements is correct with respect to this transaction only? a. Consolidated sales will decrease by $75 000 Ob. Consolidated sales will decrease by $95 000 OC. Consolidated profit will decrease by $20 000 d. Consolidated profit will decrease by $40 000 Oe. Consolidated profit will decrease by $60 000

Tookey Ltd sold inventory items (with a cost of $75 000) to its parent Milky Ltd for $135 000. One third of the inventory items were sold by Milky Ltd to external parties before the financial year end. Ignoring taxes, which of the following statements is correct with respect to this transaction only? a. Consolidated sales will decrease by $75 000 Ob. Consolidated sales will decrease by $95 000 OC. Consolidated profit will decrease by $20 000 d. Consolidated profit will decrease by $40 000 Oe. Consolidated profit will decrease by $60 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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