Parent owns 80% of Subsidiary. During the current accounting period, Subsidiary sold goods to Parent for $18,000 which gave Subsidiary a profit of $6,000. At the end of the reporting period, half of these goods are included in Parents inventory.

At the end of the reporting period, Parent accounts showed retained profits of $100,000, and Subsidiary accounts showed net assets of $75,000, including retained profits of $65,000. Subsidiary had retained profits of $20,000 at acquisition.

Required:

Show the adjustment to eliminate unrealised profits in the consolidation workings for Parent.

(Show workings)