Final answer:
The question deals with accounting consolidation practices, particularly eliminating unconfirmed profits in inventories from transactions between a parent company and its subsidiary.
Step-by-step explanation:
The student's question pertains to the consolidation process in accounting where a parent company's beginning and ending inventories might contain unconfirmed profits from goods purchased from a subsidiary ("Sub") and vice versa.
When preparing consolidated financial statements, it is important to eliminate these unconfirmed profits to avoid overstating profits.
The amounts of unconfirmed profits at the beginning and at the end of the period would be specific to the company's transactions and accounting records, which are not provided here.
Lastly, understanding how much ownership the parent has in the subsidiary is crucial for consolidation, as this affects the method used and the extent of the consolidation procedure.
In this question, we are discussing inventories and unconfirmed profits between a parent company and its subsidiary.
Specifically, the parent's beginning and ending inventories contain unconfirmed profits on goods purchased from the subsidiary, and vice versa. We also know that the parent company owns the subsidiary.
This question falls under the subject of Business and is appropriate for a College level.
SEO keywords: inventories, unconfirmed profits, parent company, subsidiary