Reverse Analysis In consolidation at the end of 2006, Cost of Sales was credited fot $60,000 as a result of a posting from the inventory/COS change in basis elimination entry. During 2006 the sub¬

sidiary sold 60% of the inventory it had acquired from the parent in 2006. The parent’s markup was 25% of its cost.

Prepare an analysis of intercompany transfers for 2006 (use the format shown in the chapter).