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1, Parent owns 100% of Subsidiary's common stock. During the year, subsidiary sold inventory to Parent for $200,000 which included a profit margin of 40%.

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1, Parent owns 100% of Subsidiary's common stock. During the year, subsidiary sold inventory to Parent for $200,000 which included a profit margin of 40%. At year end, half of this merchandise remained in Parent's warehouse. Calculate how much unrealized gross profit in ending inventory would need to be eliminated (deferred) in the consolidation process and provide all of the consolidation worksheet journal entries that would be necessary for this transaction

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