On 1 June 2022, parent entity Forest Ltd sold inventory to subsidiary entity Wood Ltd for $80,000. The mark-up on sale was 25%. By 30 June 2020, 50% of the inventory had been sold to external customers for $90,000. What consolidation adjusting entries, if any, would be required on 30 June 2022 for this intra-group transaction?

Group of answer choices

No consolidation entries are required as all the profit has become realized

Dr Sales $90,000; Cr COGS $81,000; Cr Inventory $9,000

Dr Sales $80,000; Cr COGS $72,000; Cr Inventory $8,000

Dr Retained Earnings $8,000; Cr COGS $8,000