parent ltd pays 550 000 cash for 70 of the outstanding voting shares of sub ltd on j 4372626

Parent Ltd. pays $ 550,000 cash for 70% of the outstanding voting shares of Sub Ltd. on January 1, 20X5. The following information was available:During 20X5, Sub Ltd. earned $ 180,000 and paid no dividends. The inventory on hand at January 1, 20X5, was sold during 20X5. The equipment will be depreciated over 10 years straight-line; the building will be depreciated over 20 years straight-line. The liabilities were paid during 20X5. Parent Ltd. uses the cost method of accounting for its investment.RequiredPrepare the consolidation- related eliminations required at December 31, 20X5, based on the above information under the entitymethod.
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Parent Ltd pays 550 000 cash for 70 of the

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