Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A group of entities comprised of Mark Ltd (parent entity) and Roger Ltd (subsidiary entity) have the following inventory balances at 30 June 2021. Mark

A group of entities comprised of Mark Ltd (parent entity) and Roger Ltd (subsidiary entity) have the following inventory balances at 30 June 2021.

Mark Ltd

$49 000

Roger Ltd

$45 000

There are two intra-group transactions incurred during the year ended on 30 June 2021. On 1 October 2020, Mark Ltd recorded $6 000 of profit (before-tax) from sale of the inventory to Roger Ltd, then on 20 May 2021, Roger Ltd recorded $2 000 of loss from sale of the inventory to Mark Ltd. All inventories transferred between Roger Ltd and Mark Ltd have not been sold to external parties. The company tax rate is 30%.

Required:

What is the amount of total consolidated Inventory balance shown on the consolidation worksheet at 30 June 2021?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Michelle Hanlon, Robert Magee, Glenn Pfeiffer, Thomas Dyckman

5th Edition

1618531654, 9781618531650

More Books

Students also viewed these Accounting questions

Question

How is a bivariate outlier identified in a scatterplot?

Answered: 1 week ago