Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. there are two intra-group transactions incurred du

There are two intra-group transactions incurred during the year ended on 30 June 2021. On...

50.1K

Verified Solution

Question

Accounting

There are two intra-group transactions incurred during the year ended on 30 June 2021. On 1 October 2020, Mark Ltd recorded $4 000 of profit (before-tax) from sale of the inventory to Roger Ltd, then on 20 May 2021, Roger Ltd recorded $2 000 of loss from sale of the inventory to Mark Ltd. All inventories transferred between Roger Ltd and Mark Ltd have not been sold to external parties. The company tax rate is 30%.

Required:

What is the amount of total consolidated 'Inventory' balance shown on the consolidation worksheet at 30 June 2021?


During the year ended on 30 June 2020, a subsidiary entity sold inventories to its parent entity for $12 000. The inventory had originally cost the subsidiary $3 000. The parent entity sold 40% of the inventory transferred from the subsidiary to an external party during the year. The company tax rate is 30%.


Required:

What is the amount of adjustment required for the consolidated "Cost of Sales" at 30 June 2020 in relation to this intra-group transaction?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students