a. A parent owns two third of the subsidiary’s equity. As at a year end the subsidiary’s inventory includes goods sent t

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a. A parent owns two third of the subsidiary’s equity. As at ayear end the subsidiary’s inventory includes goods sent to it bythe parent invoiced at $360,000. Parent has purchased these goodsfor $300,000. What will be the entries for the parent’s retainedearnings and subsidiary’s inventory in order to eliminate theunrealised profit? Justify your answer,