Dipendra Ltd owns all the shares capital of Kiran Ltd. On 1 September 2021, Dipendra Ltd sold inventory to Kiran Ltd for $24,900. Dipendra Ltd originally purchased the inventory for $12,450. 80% of the inventory in Kiran Ltd was sold outside the group by 31 December 2021 (financial year-end). The tax rate is 30%. Record the consolidation elimination entries for the intragroup sale of inventory

Dipendra Ltd owns all the shares capital of Kiran Ltd. On 1 September 2021, Dipendra Ltd sold inventory to Kiran Ltd for $24,900. Dipendra Ltd originally purchased the inventory for $12,450. 80% of the inventory in Kiran Ltd was sold outside the group by 31 December 2021 (financial year-end). The tax rate is 30%. Record the consolidation elimination entries for the intragroup sale of inventory

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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