Question
Pfizer Ltd owns all of the shares of Biotech Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified,
Pfizer Ltd owns all of the shares of Biotech Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2021. Assume an income tax rate of 30%. Part C On 1 May 2020, Pfizer Ltd sold inventory to Biotech Ltd for $66,000, recording a before-tax profit of $14000. All this inventory acquired from Pfizer ltd remained on hand at 30 June 2020. During January 2021, Biotech Ltd sold all of this inventory to external entities for $100,000. (1 mark)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started