A parent sold some inventory to its subsidiary for $55 000. The goods had originally cost the parent $40 000. At the end of the year all of the inventory was still on hand. The consolidation adjustment entry to eliminate this transaction will include the following line items?
| I. |
Cr |
Cost of sales |
$15 000 |
| II. |
Cr |
Cost of sales |
$40 000 |
| III. |
Cr |
Cost of sales |
$95 000 |
| IV. |
Cr |
Cost of sales |
$55 000
|