The following intercompany transactions occurred during the year:

Parent loaned $200 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan.

Parent made a sale to Sub for $300 cash. The inventory had originally cost Parent $220. Sub then sold that same inventory to an outsider for $400.

Parent made a sale to Sub for $500 cash. The inventory had originally cost Parent $280. Sub has not yet sold that same inventory to an outsider. (Don