Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0. Duringthe financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $. The originalcost to Subsidiary was 6000$. Half of the inventory was still on hand with Parent at 30 June 20X1.During the year ended 20 June 20X2, the remainder of the inventory was sold to parties external to thegroup. Assume a tax rate of 30%. Which of the following proforma journal entries would be processedin the consolidated worksheet for the financial year ended 30 june 20X2?

Q: P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S…

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Q: 17ab

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A: SUBSIDIARY BOOKS-       DATE         PARTICULARS        DEBIT $   CREDIT $ 20-DEC-1.   Cash…

Q: On January 1, 2018, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for…

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Q: H has a 75% owned subsidiary S. During the year ending 31 December 2021 H sold inventory to  S for…

A: Lets understand the basics. When transaction of inventory happen between inter company then there is…

Q: On December 31, 20X1, Parent Company purchased 80% of the common stock of Subsidiary Company for…

A: Determination and distribution of excess schedule (D & D) Compares the price paid with the…

Q: Prepare a consolidated statement of financial position as at 31 December 20X1.

A:

Q: The parent acquired 75% of the ordinary shares of Sub with acquired control. The summarized…

A: On preparing consolidated financial statements, the inter party transactions must be eliminated.

Q: H has a 75% owned subsidiary S. During the year ending 31 December 2021 H sold inventory to S for an…

A: Consolidated financial statements are the financial statements of an entity that has a subsidiary or…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.