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solution for: a. The inventory of Mango Ltd on 1 July 2016 include inventory purchased from Pawpaw Ltd for $200,000. The original cost of the

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a. The inventory of Mango Ltd on 1 July 2016 include inventory purchased from Pawpaw Ltd for $200,000. The original cost of the inventory was $120,000. Mango Ltd sold all of the inventory by January 2017.

How does the upstream intra-group sale of inventory impact on the NCI share of retained earnings at 30 June 2017?

b. On 20 May 2016, the Associate sold inventory to the Parent for $250,000. The original cost of the inventory to the Associate was $200,000. By 30 June 2016, the Parent has sold 25% of the inventory to third parties.

How does the inter-entity sale of inventory impact on share of profit in the Associate on 30 June 2016?

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