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On 1 May 2 0 1 9 , the subsidiary sold inventories to the parent for $ 2 5 0 0 0 on credit, recording

On 1 May 2019, the subsidiary sold inventories to the parent for $25000 on credit, recording a before tax profit of $7000. Half of the inventories were unsold by the parent at 30 June 2019 and none at 30 June 2020. The parent paid half the amount owed on 15 June 2019 and the rest on 1 July 2019. Assume an income tax rate of 30%. Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020.

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