Consolidated journal entries

3.2 Hedley Lid acquired all shares in Byrne Led on 1 June 2016. During the you ending 30 June 2019, Hedley Led sold inventory to Byrne Lid for $78 904 inventory had cost Hedley Lid $34 000. lly the end of the year ending 30 june 3919 Byrne Ltd had sold three quarters of the inventory to Channel Lid and the tempany one quarter of the inventory was still held by Byrne Lid Assume corporate tax rate is 30% Required: For the purposes of consolidated financial statements, discuss the reasons as to gue need for the adjustment journal entries for the above intra-group transactions between the two entities and prepare the consolidation journal entries for the above transaction (7 marks)