John Ltd, an ultimate parent reporting entity, holds a 25% interest in the voting shares of Wick Ltd. Equity accounting is applied to the interest held in Wick Ltd. During the second year since the date of the investment in the associate, inventory was sold from Wick Ltd to John Ltd at a selling price of $82,000. The cost of the inventory to Wick Ltd was $44,000. John Ltd held 20% of the inventory on hand at the end of the second year.

Required:

Prepare the appropriate consolidation adjusting journal required in the second year. (Show your workings)