Question: P Company sells inventory costing 100 000 to its subsidiary S
P Company sells inventory costing $100,000 to its subsidiary, S Company, for $150,000. At the end of the current year, one-half of the goods remains in S Company's inventory. Applying the lower of cost or market rule, S Company writes down this inventory to $60,000. What amount of intercompany profit should be eliminated on the consolidated statements workpaper?
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