A parent company sells some inventory to its subsidiary for $5 000 during the financial year ended
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Question:
A parent company sells some inventory to its subsidiary for $5 000 during the financial year ended 30 June 2021. The original cost of the inventory to the parent was $4 000. By the end of the financial year the subsidiary has resold half of the inventory outside the group. The tax rate is 30%.
What is the tax effect entry at 30 June 2021 ?
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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