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please make it clear and with details. Q.1) The following intercompany transactions of XYZ Company occurred during the year 2020: Parent loaned $ 25,000 to
please make it clear and with details.
Q.1) The following intercompany transactions of XYZ Company occurred during the year 2020: Parent loaned $ 25,000 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan. Parent made a sale to Sub for $ 26,000 cash. The inventory had originally cost Parent $24,440. Sub then sold that same inventory to an outsider for $28,000. Parent made a sale to Sub for $ 30,000 cash. The inventory had originally cost Parent $ 22,560. Sub has not yet sold that same inventory to an outsider. (Don't forget equity method entry!) . Based on our conceptual discussion, what consolidation worksheet entries would you make? (2 Marks)Step by Step Solution
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