Q3. Given the following information: Parent sells Sub inventory with a cost of $48,000 for $60,000.

/in /by

Q3. Given the following information: Parent sells Sub inventory with a cost of $48,000 for $60,000. Sub then sells this inventory to outsiders for $75,000. Parent sells Sub inventory with a cost of $8,000 for $10,000, which remains on hand in Sub’s ending inventory.

Calculate unrealized profits . Pass eliminating entry in both the cases: Parent sells to Sub and Sub to Outsider Parent sells to Sub, but Sub not yet to Outsider How would it effect Parents gross profit and Sub’s inventory