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A parent owns two third of the subsidiarys equity. As at a year end the subsidiarys inventory includes goods sent to it by the parent
A parent owns two third of the subsidiarys equity. As at a year end the subsidiarys inventory includes goods sent to it by the parent invoiced at $324,000. Parent has purchased these goods for $270,000. What will be the entries for the parents retained earnings and subsidiarys inventory in order to eliminate the unrealised profit? Justify your answer.
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