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On 1 June 2021, Mayne Ltd sold inventory on credit to its fully owned subsidiary Game Ltd for $114 000. The inventory had cost Mayne Ltd $90 000. By 30 June 2021, 40% of this inventory remained unsold by Game Ltd and Game Ltd had paid Mayne Ltd 50% of the amount owed. The tax rate is 30%. Required:
Problem 1: Prepare the adjusting entries for the consolidation worksheet at 30 June 2021.
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