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Problem 1: Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Ltd for $58,000. At the end of the financial year, being 30 June 2021, a quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct?
Option 1: Consolidated profit to be eliminated by $8,000Option 2: Consolidated sales to be added by $58,000Option 3: Consolidated sales to be eliminated by $50,000Option 4: Consolidated profit to be eliminated by $6,000
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