The Subsidiary makes a sale of inventory to the Parent for 400000 during the

The subsidiary makes a sale of inventory to the

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36)The Subsidiarymakes a sale of inventory to the Parent for $400,000 during the year to 30 June 2009. The original cost of the inventory to the Subsidiary is $300,000. There is 80% of this inventory on hand with the Parent at year end. The consolidation worksheet entries for 30/6/09 include: a)Dr. Sales $400,000 Cr. Cost of sales $300,000 Cr. Inventory $100,000 b)Dr. Sales $400,000 Cr. Cost of sales $320,000 Cr. Inventory $ 80,000
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Page 4 of 7 c)Dr. Sales $400,000 Cr. Cost of sales $400,000 d)Dr. Sales and Inventory $ 80,000 e)No entries for this are required for 30/6/09 37)Refer to Question 36. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 will include the following deferred tax adjustment: 38)The Subsidiarymakes a sale of inventory to the Parent. The transfer price is $450,000. The mark up on cost used by the Subsidiary is 50%. The Parent has 80% of the inventory still on hand. The unrealised profit in closing inventory amounts to: 39)The Subsidiarymakes a sale of inventory to the Parentfor $300,000 during the year to 30 June 2008. The original cost of the inventory to the Subsidiary is $200,000. There is 60% of this inventory on hand with the Parent at the beginning of the year to 30 June 2009. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 include:
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Page 5 of 7 Dr. Income tax expense $ 30,000 Cr Cost of sales $100,000
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  • One '11
  • KNAPP
  • Depreciation, Generally Accepted Accounting Principles, Cr.

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