MC Qu. 16-65 Hill Company entered into the... Hill Company entered into the following inventory transactions with its investees during 2018: Sold inventory to Grant Inc. for $150,000. The inventory originally cost Hill $120,000. Grant sold 75% of the inventory during 2018. Hill owns 15% of the voting stock of Grant and does not use the equity method to account for the Grant investment Sold inventory to Thornton Inc. for $400,000. The inventory originally cost Hill $320,000. Thornton sold all of this inventory during 2018. Hill owns 100% of the voting stock of Thornton. Which of the following adjustments is correct with respect to preparing Hill's 2018 consolidated financial statements? Multiple Choice Sales will be decreased $400,000. Gross profit will be decreased $110,000. Inventory will be decreased $40,000. Cost of goods sold will be decreased $338,000