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Question - During the previous year of 30 June 2019, Sydney Ltd sold inventory to Melbourne Ltd for $10,000, recording a before-tax profit of $4,000. On 1 July 2019, 50% of this inventory was still on hand with Melbourne Ltd. Prepare the journal entries for the consolidation worksheet for 30 June 2020. Details of intra-group transactions that are relevant to the consolidation for 30 June 2020 are as follows: Assume an income tax rate of 30%.
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