Please answer MCQ 1, 2, and 3. Need urgent help!

Use the following information to answer the following MCQs.

During September of Year 9, Par sold $200,000 worth of inventory to Sub, 35% of which was sold to outsiders during Year 9. Pars cost was $140,000.

During November of Year 10, Sub sold inventory to Par for $180,000. 25% of this inventory was resold to an outsider during Year 10. Subs sales are priced with a 40% profit margin.

During June of Year 10, Sub sold a plot of Land to Par for $120,000. The land was recorded at cost of $90,000 on Subs book prior to the sale. Par has not yet sold the land.

The effective tax rate for both companies is 30%.

MCQ1. Par COGS was $910,000 and Sub COGS was $775,000. How much is the total of COGS line on the consolidated income statement in Year 10?

a.$1,520,000

b.$1,670,600

c.$1,685,000

d.$1,700,000

e.$1,850,000

MCQ2. Which ofthe following would be the adjustment in the calculation of cons NI relating to land?

a.Add $21,000 to subs net income

b.Subtract $21,000 from the parents net income

c.Subtract $21,000 from the subs net income

d.No adjustment

e.Subtract $30,000 from subs net income

MCQ3. Par income tax expense was $110,000 and Sub income tax expense was $115,000. How much is the total of income tax expense line on the consolidated income statement in Year 10?

a.$211,500

b.$220,500

c.$225,000

d.$243,900

e.$238,500

Hints: Recommend you set up the third schedule for beginning inventory, ending inventory, and land. Show 3 columns: before tax, tax, and after-tax columns

Logic: Remove all impact as if the intercompany transactions never occurred, until sold to an outsider

Thanks in advance!