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
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:
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.