For the year ending December $31,2023,$ Sissy Inc.sold $$400,000$ in inventory to Papa Corporation. Sissy earned a

gross profit of $30\%$ on all its sales. At the end of $2023,$ Papa still holds $20\%$ of the inventory. Inventory turns over

every $60$ days. Sissy Inc. is a $100\%$ owned subsidiary of Papa Corporation. Ignoring the adjustment required to

opening balances, what current year adjustments must be made in the December $31,2024$ consolidated financial

statements?

Inventory would increase by $$24,000,$ and cost of sales would decrease by

$$24,000.$

Inventory would decrease by $$24,000,$ and cost of sales would increase by

$$24,000.$

Sales would increase by $$80,000.$ Inventory would increase by $$24,000,$ and cost

of sales would increase by $$104,000$

Sales would increase by $$400,000.$ Inventory would increase by $$24,000,$ and

cost of sales would increase by $$376,000$