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Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. During 20X4, Planet purchased 57,000 Playday doghouses for $24 each and
Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. During 20X4, Planet purchased 57,000 Playday doghouses for $24 each and sold 42,000 of them to Saturn for $30 each. Saturn sold 35,000 of the doghouses to retail establishments prior to December 31, 20X4, for $45 each. Both companies use perpetual inventory systems. Required: a. Prepare all journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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