In preparing the consolidation worksheet for Pencil Corporation and its 60 percent-owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper Worksheet Entries Cash Credit Debit Accounts Payable To eliminate the unpaid balance for intercorporate inventory sales in 20x5 85,000 85,000 Cost of Goods Sold Income from Stylus Company To eliminate unrealized inventory profits at December 31, 20x5. Income from Stylus Company Sales 16,800 16,800 196,000 To eliminate intercompany sales for 20x5. 196,000 Pencil's bookkeeper recently graduated from Oddball University, and although the dollar amounts recorded are correct, he had some confusion in determining which accounts needed adjustment. All intercorporate sales in 20X5 were from Stylus to Pencil, and Stylus sells inventory at cost plus 40 percent of cost. Pencil uses the fully adjusted equity method in accounting for its ownership in Stylus. Required: a. What percentage of the intercompany inventory transfer was resold prior to the end of 20X5? (Do not round your intermediate calculations. Round your final answer to nearest whole percentage.) Intercompany inventory % Help Save & Exit Sube b. Prepare the appropriate consolidation entries needed at December 31, 20x5, to prepare consolidated tinancial statements. (01 no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Check my won view transaction list pok Import a new list nt A Record the entry to eliminate intercompany receivable/payable. nces Record the entry to eliminate the intercompany inventory sale