Problem 3. Intercompany Merchandise Transactions The following information is available concerning transactions between a parent and its wholly-owned subsidiary for the current year. The parent sells merchandise to the subsidiary at a markup of 25% on cost. The subsidiary's beginning inventory includes $30,000 purchased from the parent, and its ending inventory includes S42,000 purchased from the parent. Total sales from the parent to the subsidiary were $800,000. Required: a. Prepare the consolidation journal entries related to the intercompany transactions at the end of the year. (9 pts) (TI) Assume the subsidiary sold merchandise acquired from the parent for $900,000 during the current year. What amounts appear on the separate books of the parent and the subsidiary, for sales revenue and cost of goods sold? (4 pts) b. Following part b, what amounts appear on the consolidated income statement for the year, for sales revenue and cost of goods sold? (4 pts) c. Problem 3. Intercompany Merchandise Transactions The following information is available concerning transactions between a parent and its wholly-owned subsidiary for the current year. The parent sells merchandise to the subsidiary at a markup of 25% on cost. The subsidiary's beginning inventory includes $30,000 purchased from the parent, and its ending inventory includes S42,000 purchased from the parent. Total sales from the parent to the subsidiary were $800,000. Required: a. Prepare the consolidation journal entries related to the intercompany transactions at the end of the year. (9 pts) (TI) Assume the subsidiary sold merchandise acquired from the parent for $900,000 during the current year. What amounts appear on the separate books of the parent and the subsidiary, for sales revenue and cost of goods sold? (4 pts) b. Following part b, what amounts appear on the consolidated income statement for the year, for sales revenue and cost of goods sold? (4 pts) c