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1) In 2013, company A sold inventory costing $100 to its fully-owned subsidiary company B for $150. The entire inventory remains with company B at the end of 2013. What journal entry should be recorded (*G) at the beginning of 2014 to eliminate the gain from intra-entity transaction? (assuming that the parent uses the equity method) 2) What if only half of the inventory from the intra-entity transaction remain with company B at the end of 2013?
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