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3. Parent Company owns all of the outstanding shares of Sub Company and uses the initial value method of accounting. During 2017, Parent Company sells inventory costing $100,000 to Sub Company for $150,000. a. What is the required elimination for this transaction in 2017? Include the parent and sub's entries for partial credit. Assume Sub Company sells all goods to a 3d party by the end of the year. Parent Sub Elim Cash 150,000 Inventory 150,000 Sales 150,000 Sales 150,000 Cash 150,000 COGS 150,000 COGS 100,000 Inventory 100,000 b. Assume that Sub Company has $30,000 in ending inventory related to the purchase from Parent Company at the end of 2017. What is the required elimination entry in 2017 related to ending inventory? Parent Sub Elim Cash XXX COGS 10,000 Sales XXX Inventory 10,000 COGS 120,000 Inventory 120,000 c. Assume that Sub Company sold the $30,000 of the inventory purchased from Preferred Company in 2017 during 2018. What is the required elimination entry in 2018? Parent Sub Elim Ret Earn 10,000 COGS 10,000 d. Assume the same facts as in C except that the parent uses the equity method of account. What is the Elimination required in 2018? Parent Sub Elim Investment in Sub10,000 COGS 10,000