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Wilma Inc. acquired all of Barney Co. on January 1, 2021.Wilma decided to use the initial value method to account for this investment. During 2021,
Wilma Inc. acquired all of Barney Co. on January 1, 2021.Wilma decided to use theinitial value methodto account for this investment. During 2021, Wilma sold to Barney for $600,000 inventory with a cost of $500,000. At the end of the year 30% of the goods were still in Barney's inventory.
Required:
PrepareConsolidation Entry TIfor the intra-entity transfer andConsolidation Entry Gfor the ending inventory adjustment necessary for the consolidation worksheet at December 31, 2021.
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