Parent Ltd owns 80% share capital of Subsidiary Ltd. The opening inventory in Parent Ltd as at 1 July 2022 included inventory acquired from Subsidiary Ltd for $200,000. This inventory had cost Subsidiary Ltd $150,000 to produce. Required: Prepare the necessary consolidation journal entries on 30 June 2023 and provide justification for your journal entry. Tax rate is 30%. (Narrations are not required).

Parent Ltd owns box, share capital of Subsidiary Ltd. The opening inventory in Parent ind as at 1 July 2022 included inventory acquired from Subsidiary Ltd for $200,000. This inventory had cost Subsidiary Led \$150,000 to produce. Required: Prepare the necessary consolidation journal entries on 30 June 2023 and provide iustification for your journal entry. Tax rate is 30\%. (Narrations are not required)