Question: Olive Ltd. sold inventory costing $90,000 to Hub Ltd. Olive Ltd. recorded a $20,000 profit before tax on these transactions. All these transactions occurred during

Olive Ltd. sold inventory costing $90,000 to Hub Ltd. Olive Ltd. recorded a $20,000 profit before tax on these transactions. All these transactions occurred during the financial year 2021-22. On 30 June 2022, Hub Ltd. still had 20% of the inventory on hand and the receivable was still outstanding.

Hub Ltd. owns all the share capital of Olive Ltd. The income tax rate is 30%.

Required:

Prepare all the relevant journal entries required for the consolidation worksheet on 30 June 2022 for the following transactions.

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