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Problem Corp owns 70% of Solution Inc. Problem uses the equity method to account for...

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Accounting

Problem Corp owns 70% of Solution Inc. Problem uses the equity method to account for its investment in Solution.
PART A (25 Points) Show all work and label all numbers.
During 2021, Solution reported sales of $5,000 and cost of goods sold of $3,500. Included in the sales total was inventory sold at normal markup to Problem for $650. Problem's ending inventory included 30% of the goods purchased from Solution. During 2022, Solution reported sales of $5,500 and cost of goods sold of $3,575. Included in the sales total was inventory sold at normal markup to Problem for $520. Problem's ending inventory included 40% of the 2022 purchases from Solution.
Prepare the 12/31/2022 eliminating journal entries with respect to the intercompany inventory transactions.
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