During the current period, a subsidiary entity sold inventories to its parent entity at a loss of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The tax rate is 30%. Required Please complete the following worksheet entries required for the preparation of the consolidated financial statements in relation to the above intra-group transaction at the end of the current financial year.
During the current period, a subsidiary entity sold inventories to its parent entity at a loss of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The tax rate is 30%. Required Please complete the following worksheet entries required for the preparation of the consolidated financial statements in relation to the above intra-group transaction at the end of the current financial year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the current period, a subsidiary entity
sold inventories to its parent entity at a loss of
$6 000. The goods had originally cost the
subsidiary $30 000. All the inventories were
still on hand at the end of the year. The tax
rate is 30%.
Required
Please complete the following worksheet
entries required for the preparation of the
consolidated financial statements in relation
to the above intra-group transaction at the
end of the current financial year.
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