Question 2 (12 marks) This question has two parts. Required: a) Hunter Company and Moss Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Hunter Company holds 80 percent ownership of Moss Company, Hunter's controller compiled the following information with regard to intercompany transactions between the two companies in 20x7 and 20x8: Percent Resold to outside third party in Produced by Sold to Intra-group Cost to Sales Price 20X720X8 Produce 30% Year $170,000$200,000 20X7 20 -- HunterCo 70% 50% Moss Co. | Moss Co Hunter Co Hunter Co Moss Co Hunter Co. 50,000 35,000 230,000 280 000 80,000 52000 75% 20x8 20x8 Moss Co 40% ) Give the eliminating entries required at December 31,20 X8,to eliminate the effects statements of the inventory transfers in preparing a full set of consolidated financial (4 marks) d compute the amount of cost of goods sold to be reported in the consolidated income PeopleMag sells a plot of land for $100,000 to Seven Star Company,its 100 percent owned statement for 20X8. (4 marks) aubsidiary, on January 1, 2ox7. The cost of the land was $75,000,when t was purehases in 20X6. In 20X9, Seven Star sells the land to Hot Properties Inc. an unrelated entity 1 20.00 ard 20x9? (4 marks) 00. How is the land reported in the consolidated financial statements for20-20