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ZARA Company owns 60% of the outstanding voting stock of Biden Mall at book value. ZARA sells merchandise to Biden Mall at 160% above ZARA's

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ZARA Company owns 60% of the outstanding voting stock of Biden Mall at book value. ZARA sells merchandise to Biden Mall at 160% above ZARA's cost. Intercompany sales from ZARA to Biden Mall for 2017 were $640,000. Biden Mall didn't sell anything in 2017, one-half in 2018 were sold and the remaining in 2019. 1. Considering the information given above, what elimination entry would be needed with respect to the intercompany transaction in the working paper used to prepare consolidated financial statements for 2017, 2018, 2019? (6 Marks) 2. What amount of unrealized profit did ZARA Company have at the end of 2017 and 2018

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