Mungo Ltd acquired its 100 per cent interest in Barry Ltd for $712000 on 1 July 2015, that is four years earlier. At that date the capital and reserves of Barry Ltd were:

Share capital $400000

Retained earnings $250000

$650000.

At the date of acquisition all assets were considered to be fairly valued. During the year Mungo Ltd made total sales to Barry Ltd of $130000, while Barry Ltd sold $104000 in inventory to Mungo Ltd. The opening inventory in Mungo Ltd as at 1 July 2018 included inventory acquired from Barry Ltd for $84000 that had cost Barry Ltd $70000 to produce. The closing inventory in Mungo Ltd includes inventory acquired from Barry Ltd at a cost of $67200. This cost Barry Ltd $52000 to produce. The closing inventory of Barry Ltd includes inventory acquired from Mungo Ltd at a cost of $24000. This cost Mungo Ltd $19200 to produce. The management of Mungo Ltd believe that goodwill acquired was impaired by $5000 in the current financial year. Previous impairments ofgoodwill amounted to $10000. On 1 July 2018 Mungo Ltd sold an item of plant to Barry Ltd for $100000 when its carrying amount in Mungo Ltd's accounts was $80000 (cost $120000, accumulated depreciation $40000). This plant is assessed as having a remaining useful life of six years from the date of sale. The Group has a policy of measuring its property, plant and equipment using the 'cost model'. Other information Barry Ltd paid $20000 in management fees to Barry Ltd. The tax rate is 30 per cent.

a) sales dr $104,000

cost of goods sold Cr $104,000

b) Dr. cost of goods sold $15,200

Cr. Inventory $ 15,200

How did the amount $15,200 came?