parent corp owns 70 of the voting shares of sub ltd during 20×4 sub ltd sold invento 4372624

Parent Corp. owns 70% of the voting shares of Sub Ltd. During 20X4, Sub Ltd. sold inventory costing $ 640,000 to Parent Corp. for $ 800,000. At December 31, 20X4, Parent Corp. still had $ 300,000 of these goods in its inventory, and had not yet paid for $ 480,000 of the goods. All of the remaining goods were sold in 20X5.Sub Ltd. also sold a piece of land ( cost of $ 188,000) to Parent Corp. on July 1, 20X4, for $ 260,000, for which Parent Corp. had issued Sub Ltd. a five- year, 10% per annum note. The interest will be paid on July 1, 20X5.Required1. Prepare the consolidation related eliminations required in 20X4 and 20X5 respectively.2. Assuming that Sub Ltd. earned $ 680,000 during 20X4 and $ 880,000 during 20X5, calculate the non- controlling interest in the earnings of Sub Ltd.View Solution:
Parent Corp owns 70 of the voting shares of Sub

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