In the process of eliminating intercompany sales of inventory, as a working paper only, we debit sales and credit COGS (cost of inventory) and inventory (intercompany unrealized gross true false unrealized inventory profit needs to be readjusted to COGS, if one of the intercompany sales of inventory have not been sold to 3rd parties. True false P company owns 80% of the outstanding stock of S company. On January 1, 2011. S company told land to P company for $400,000. S had originally purchased the land on june 30, 2007, for $150,000. P company plans to construct a building on the land brought from S in which it will house new production machinery. The estimated useful life of the building and the new machinery is 20 years. Prepare the entry to eliminate the intercompany sale of land. Press tab to enter the content editor. For the toolbar, press ALT + F10(PC) or ALT + FN + F10(Mac)