Question: QUESTION SEVEN (12 Marks)(36 mins) A Stan Ltd sold inventories during the current period to its wholly owned subsidiary, Marcia Ltd, for $45 000.

QUESTION SEVEN (12 Marks)(36 mins) A Stan Ltd sold inventories during the

QUESTION SEVEN (12 Marks)(36 mins) A Stan Ltd sold inventories during the current period to its wholly owned subsidiary, Marcia Ltd, for $45 000. These items previously cost an L 537 500. Marcia Ltd subsequently sold half the items to an external entity for $27 500. The remainder of the inventory was sold outside the group the following year. The tax rate is 30% Required: Prepare the consolidation journal entries for the current and the following year.

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