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How do you calculate the resold amount and ending inventory for the begining of 20X6 for problem 25 in chapter 6 in Advanced Financial accounting
How do you calculate the resold amount and ending inventory for the begining of 20X6 for problem 25 in chapter 6 in Advanced Financial accounting 10th edition?
Chapter 6, Problem 25P Bookmark Show all steps := ON Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Since Proud Company holds 60 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 20x5 and 20X6 Percent Resold to Nonaffiliate in Cost to Sale Price Year Produced by Sold to 20X5 20X6Produce to Affiliate 20X5 | Proud Company | Slinky Company | 60% | 40%) $100,000 | $150,000 20X5 Slinky Company Proud Company 30 50 70,000100,000 20X6 Proud Company Slinky Company 9040,000 60,000 20X6 Slinky Company Proud Company 25 200,000240,000 Required a. Give the eliminating entries required at December 31, 20X6, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements
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