PART I: INTRA-ENTITY INVENTORY TRANSFER (30 POINTS) Pit Corporation owns 70% of Stop Company's outstanding common stock. On 08/28/20, Pit sold inventory to stop in exchange for $560,000 cash. Pit had purchased the inventory on 05/02/20 at a cost of $420,000. On 12/20/20, Stop sold 90% of the inventory to 3rd parties at a cash price of $672,000. The other 10% of the inventory remains on hand at 12/31/20. IN ORDER TO EARN FULL CREDIT, BE SURE TO CLEARLY SHOW ALL YOUR WORK. Requirement 1: Prepare the journal entries that would be recorded on Pit's and Stop's books during 2020. (10 POINTS) Requirement 2: Prepare the 12/31/20 consolidation worksheet entry related to these transactions. Feel free to use the templates provided below. (20 POINTS) ADJUSTMENT WE HAVE: Combined G/L Bals WE NEED: Consolidated Amounts Account P's G/L S's G/L WHICH LEADS TO....... WE HAVE: Combined G/L Bals WE NEED: Consolidated Amounts Consolidation Entries debit credit Account P's G/L S's G/L CALCULATIONS