Zimmer Ltd holds a 25 per cent interest in Finn Ltd. During the year ending 30 June 2023, Zimmer Ltd acquires $500 000 of inventory from Finn Ltd. This inventory cost Finn Ltd $300 000 to produce. All of the inventory is still on hand with Zimmer Ltd at year end. It is expected to be fully sold in the following year. Assume that the tax rate is 33 per cent.

REQUIRED

Provide the equity accounting entries to account for the unrealised profit in inventory sold from the associated company to Zimmer Ltd.