In preparing the consolidation worksheet for Pencil Corporation and its 60 percentowned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper:

Worksheet Entries	Debit	Credit
Cash	91,000
Accounts Payable		91,000
To eliminate the unpaid balance for intercorporate inventory sales in 20X5.
Cost of Goods Sold	13,200
Income from Stylus Company		13,200
To eliminate unrealized inventory profits at December 31, 20X5.
Income from Stylus Company	154,000
Sales		154,000
To eliminate intercompany sales for 20X5.

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.)

b. Prepare the appropriate consolidation entries needed at December 31, 20X5, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)