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Subsidiarys inventory at the year-end included $180,000 purchased from its parent. Further goods invoiced by the parent at $45,000 were in transit. The parent invoices
Subsidiarys inventory at the year-end included $180,000 purchased from its parent. Further goods invoiced by the parent at $45,000 were in transit. The parent invoices the subsidiary at cost plus 20%. Calculate the amount of unrealised profit that needs to be eliminated from the parents retained earnings. Show your workings clearly.
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