From the sale of inventory by parent to sub, journalize elimination entries for the first and second year.

First Year Beginning Inventory Sales Available Ending Inventory Cost of Goods Sold Second Year Beginning Inventory Sales Available Ending Cost of Goods Sold Parent Cost 0 $30,000 $30,000 $7500 $22500 Parent Cost $7500 $30000 $37500 $15000 $22500 Sub Cost 0 $20,000 $20,000 $5000 $15000 Sub Cost $5000 $20000 $25000 $10000 $15000 Markup 0 $10,000 $10,000 $2500 $7500 Markup $2500 $10000 $12500 $5000 $7500