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McGraw Corp

question 75

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McGraw Corp.owned all of the voting common stock of both Ritter Co.and Lawler Co.During 2018, Ritter sold inventory to Lawler.The goods had cost Ritter $65,000, and they were sold to Lawler for $100,000.At the end of 2018, Lawler still held 30% of the inventory.
Required:
How should the sale between Lawler and Ritter be accounted for in a 2018 consolidation worksheet? Show worksheet entries to support your answer.


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