Question: A Limited has a 2 5 % interest in B Limited and so has significant influence over B Limited. A Limited sold inventory to B

A Limited has a 25% interest in B Limited and so has significant influence over B Limited. A Limited sold inventory to B Limited at a profit.
At year end B Limited still had inventory on hand amounting to R100,000. A Limited sold this inventory to B Limited at a profit mark-up of 20% on selling price.
Prepare the pro forma consolidation journal entries for the above transaction, assuming a tax rate of 30%

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