(f) Dr Group sales $92000 Cr Group Purchases $92000 Dr Sarina income statement $6000 Cr Group inventory $6000 Unrealized profit = ½*12000 (g) No entry is made for this transaction since the year 2017-18 is not affected as the unrealized profit is now realized (h) Dr Group sales $60000 Cr Group Purchases $60000 (i) Dr Consolidated income statement $35000 Cr Group PPE $35000 Unrealized profit = selling price –book value $116000-$81000=$35000 Dr Accumulated depreciation $7000 Cr Subsidiary income statement $7000 Depreciation for 5 years according to group’s point of view $81000/5=$16200 Depreciation for 5 years according to subsidiary’s point of view $116000/5=...
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