Gold Company acquired 75% of Silver Company on January 1, 2020. On December 31, 2020 Silver has common stock of $250,000 and retained earnings of $600,000. Intra-entity transfer of inventory during the years 2020 and 2021 include transfer price of $160,000 and $200,000, and cost of $120,000 and $140,000 respectively. Ending inventory was $32,000 in 2020 and $40,000 in 2021. Gold uses the equity method of accounting. Khalid was required to prepare consolidation entries **G' and 'S' for the year 2021 under a (1) downstream transfer and (ii) an upstream transfer. He prepared the following entry ONLY: 'S'Downstream transfer: Common stock-Subsidiary Retained Earnings-Subsidiary, 1/1/21 Investment in Subs ....... Noncontrolling Interest-1/1/21 .250.000 ..600,000 637,500 212,500 Required: 1. Prepare consolidation entry G that Khalid should have prepared before consolidation entry 'S' for the year 2021 under a downstream transfer. 2. Prepare consolidation entries 'G' and 'S' when the transfer is upstream. T1/Pror ALTENF10XMac). Gold Company acquired 75% of Silver Company on January 1, 2020. On December 31, 2020 Silver has common stock of $250,000 and retained earnings of $600,000. Intra-entity transfer of inventory during the years 2020 and 2021 include transfer price of $160,000 and $200,000, and cost of $120,000 and $140,000 respectively. Ending inventory was $32,000 in 2020 and $40,000 in 2021. Gold uses the equity method of accounting. Khalid was required to prepare consolidation entries **G' and 'S' for the year 2021 under a (1) downstream transfer and (ii) an upstream transfer. He prepared the following entry ONLY: 'S'Downstream transfer: Common stock-Subsidiary Retained Earnings-Subsidiary, 1/1/21 Investment in Subs ....... Noncontrolling Interest-1/1/21 .250.000 ..600,000 637,500 212,500 Required: 1. Prepare consolidation entry G that Khalid should have prepared before consolidation entry 'S' for the year 2021 under a downstream transfer. 2. Prepare consolidation entries 'G' and 'S' when the transfer is upstream. T1/Pror ALTENF10XMac)