Dipendra Ltd owns all the shares capital of Kiran Ltd. On 1 September 2021, Dipendra Ltd sold inventory to Kiran Ltd $21,800. Dipendra Ltd originally purchased the inventory for $15,260. 50% of the inventory in Kiran Ltd was sold outside the group by 31 December 2021 (financial year end). The tax rate is 30%. Record the consolidation elimination entries for the intragroup sale of inventory Dr Sales Cr Cost of Sales Cr Inventory Dr Deferred Tax Liability
Dipendra Ltd owns all the shares capital of Kiran Ltd. On 1 September 2021, Dipendra Ltd sold inventory to Kiran Ltd $21,800. Dipendra Ltd originally purchased the inventory for $15,260. 50% of the inventory in Kiran Ltd was sold outside the group by 31 December 2021 (financial year end). The tax rate is 30%. Record the consolidation elimination entries for the intragroup sale of inventory Dr Sales Cr Cost of Sales Cr Inventory Dr Deferred Tax Liability
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 37P
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