Planet Corporation acquired 90 percent of Saturn Companys voting shares of stock in 20X1. During 20X4, Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Saturn for $30 each. Saturn sold all of the doghouses to retail establishments prior to December 31, 20X4, for $45 each. Both companies use perpetual inventory systems.

Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in 20x4

a. record purchase of inventory

b. record sale of playday doghouses

c.record cost of goods sold