Intercompany Transactions - Inventory. Please see attached file, thanks.

Requirement: 1. Prepare the book calculations 2. Perform the required journal entries Assume that Parent Company decides to sell $5,000 of Inventory to Sub for $7,000 cash. Show the sale and the subsequent elimination entries by Parent Company Sale by Parent Parent Company Balance Sheet Assets, Liabilities & Equities Cash AR Inventory Land Equipment Accumulated Depreciation Patent Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity Book Value $1,500,000 $10,000 $200,000 $640,000 $400,000 -$150,000 Account $0 $2,600,000 $100,000 $450,000 $600,000 $1,450,000 $2,600,000 Account Sub Company Balance Sheet Assets, Liabilities & Equities Book Value Cash $35,000 AR $10,000 Inventory $65,000 Land $40,000 PP&E $400,000 Accumulated Depreciation -$150,000 Patent $0 Total Assets $400,000 AP $100,000 Common Stock $100,000 Additional Paid In Capital $50,000 Retained Earnings $150,000 Total Liabilities & Equity $400,000 Assume that book Value = Fair Value DR CR DR CR DR CR Acquisition by Sub Elimination Entries Account