Klon Corporation owns 70 percent of the stock of Brant Company and 60 percent of the stock of Torkel Company. During 20X8, Klon sold inventory purchased in 20X7 for \(\$ 100,000\) to Brant Company for \(\$ 150,000\). Brant then sold the inventory at its cost of \(\$ 150,000\) to Torkel. Prior to December \(31,20 \mathrm{X} 8\). Torkel sold \(\$ 90.000\) of inventory to a nonaffiliate for \(\$ 120,000\) and held \(\$ 60.000\) in inventory at December \(31,20 \mathrm{X} 8\).

\section*{Required}

a. Give the journal entries recorded by Klon, Brant, and Torkel during 20X8 relating to the intercorporate sale and resale of inventory.

b. What amount should be reported in the 20X8 consolidated income statement as cost of goods sold?

c. What amount should be reported in the December \(31,20 \mathrm{X} 8\), consolidated balance sheet as inventory?

d. Give the eliminating entry needed at December \(31,20 \times 8\), to remove the effects of the inventory transfers.