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On 1 January 2019 A Ltd acquired all the issued shares in B Ltd. At.pdf

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A Ltd acquired all shares in B Ltd on January 1, 2019. At that date, B Ltd's inventory had a carrying amount $5,000 less than its fair value. By June 30, 2021, B Ltd had sold all its inventory. The tax rate is 30%. By June 30, 2022, the consolidation adjustment to inventory related to the acquisition will be a debit to inventory of $3,500.

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On 1 January 2019 A Ltd acquired all the issued shares in B Ltd. At that date the inventory of B Ltd had a carrying amount of $5 000 less than its fair value. The inventory was all sold by 30 June 2021. The tax rate is 30%. At 30 June 2022 the consolidation adjustment against inventory in relation to the transaction will be: a. a credit to retained earnings of $5 000 b. no entry is required c. a debit to inventory of $5 000 d. a debit to inventory of $3 500 e. a debit to income tax expense of $1 500

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