Problem $1$ Inventory Theory $($Note Show your work, if needed$$zero works means zero credit$)$

Consider the following Example

$1/1/$x$1$ P buys$$ inventory from a third party vendor for S for $$600,000.$

$$ During x$1,$ P sells the inventory to S for $$900,000$

$$ During x$1,$ S sells $60\%$ of the inventory to a third party for $$500,000.$

$$ During x$2,$ S sells the remaining $40\%$ of the inventory to a third party for $$4500,000.$

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Please answer the following questions

$1)$ What is the correct consolidated sales for x$1\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$2)$ What if the correct consolidated COGS for x$1\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$3)$ What is the correct consolidated inventory at $12/31/$x$2\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$4)$ What is the correct consolidated sales for x$2?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$5)$ What is the DGP for x$1?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$6)$ Provide the two entries for x$1$ and the one entry for x$2.$

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Problem $2-402$ Fixed Asset Intercompany Transfer Theory $($In question form$)$

Assume that at $1/1/$x$1$ P company sells a piece of equipment to S for $$400,000.$ At the time of the sale, the asset was recorded on P$$s books as follows:

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Original Cost$$ $$600,000$

$-$AD$-$$$300,000$

NBV$$ $$300,000$

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The asset has a $3$ year remaining life.

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$1)$ How much would be the excess $($or shortage of$)$ depreciation?$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$Please indicate whether there is an excess of shortage of depreciation.

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$2)$ What would be the correct depreciation expense for $19$x$1\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$3)$ What would be the correct consolidated asset cost at $12/31/$x$1\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$4)$ What would be the correct accumulated depreciation at $12/31/$x$2\_\_\_\_\_\_\_\_\_\_\_\_\_$

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$5)$Please provide the two consolidation journal entries at $12/31/$x$2$:

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