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Why is it necessary to make adjustments for intragroup transactions? Why is it important to...

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Accounting

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Why is it necessary to make adjustments for intragroup transactions? Why is it important to identify transactions as current or prior period transactions? Use the following information, to demonstrate the difference in the journal entries required. During the year ended 30 June 2017, Acer Ltd sold inventory to its wholly owned subsidiary Carlon Ltd for $50 000. The items previously cost Acer Ltd $35 000. The inventory was sold to external customers during 2018. The tax rate is 30%. a) Prepare the consolidation worksheet entries for 30 June 2017

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