Please prepare the consolidation entry to defer intra-entity gross profit. thank you.

Tara Company owns 70 percent of the common stock of Stodd Inc. In the current year, Tara reports sales of $5,000,000 and cost of goods sold of $3,500,000. For the same period, Stodd has sales of $500,000 and cost of goods sold of $400,000. During the year, Stodd sold merchandise to Tara for $40,000 at a price based on the normal markup. At the end of the year, Tara still possesses 40 percent of this inventory. Prepare the consolidation entry to defer intra-entity gross profit. Short Answer Toolbar navigation K2 BIUS EEVA V Ku