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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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