P Ltd is the parent of S Ltd. On 1 January 2021 P sold inventory to S for $21,000. The profit marginon this inventory was $7,000. On I May 2021, as a result of impairment testing, S was forced towrite down the inventory to $10,000. As of end of financial year, June 30, S still held all of thisinventory.Requirements:1. Provide all consolidation elimingtion entries (including workings) for June 30, 2021 in nextpart of this question.2 Compute the amount of deletion of mark-up from inventory in the group consolidationentries above and enter the amount in the answer space below.

The dollar value of the impairment is the difference between the cost of carrying the asset and the…

PLtd is the parent of S Ltd. On 1 January 2021 P sold inventoly on this inventory was $7,000. On 1 May 2021, as a result of impairment testing, S was forced to write down the inventory to $10,000. As of end of financial year, June 30, S still held all of this inventory.

PLtd is the parent of S Ltd. On 1 January 2021 P sold inventoly on this inventory was $7,000. On 1 May 2021, as a result of impairment testing, S was forced to write down the inventory to $10,000. As of end of financial year, June 30, S still held all of this inventory.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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