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Patricia Ltd owns all the shares in Lawrence Ltd. During the year ended 30 June 2021, Patricia Ltd sells inventory to Lawrence Ltd for $35,000. The inventory cost Patricia Ltd $27,000. At 30 June 2021, Sam Ltd has 40% of that inventory on hand.
Problem 1: With regards to the above transaction, what is the amount of inventory to be recorded in the consolidated statement of financial position for the year ended 30 June 2021?
Option 1: $3,200
Option 2: $14,000
Option 3: $10,800
Option 4: $27,000
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