Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0. Duringthe financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $. The originalcost to Subsidiary was 6000$. Half of the inventory was still on hand with Parent at 30 June 20X1.During the year ended 20 June 20X2, the remainder of the inventory was sold to parties external to thegroup. Assume a tax rate of 30%. Which of the following proforma journal entries would be processedin the consolidated worksheet for the financial year ended 30 june 20X2?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0. Duringthe financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $. The originalcost to Subsidiary was 6000$. Half of the inventory was still on hand with Parent at 30 June 20X1.During the year ended 20 June 20X2, the remainder of the inventory was sold to parties external to thegroup. Assume a tax rate of 30%. Which of the following proforma journal entries would be processedin the consolidated worksheet for the financial year ended 30 june 20X2?

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