P Company owns 80 percent of the outstanding stock of S Company.
Net income of S Company during 2011 was $525,000.
Company declared no dividends during year 2011.
Inventory of S Company included $487,500 in unrealized profit on purchases from P Company.
Total intercompany sales were $2,700,000.
All consolidated workpaper entries required at the year of the year to eliminate the effects of the year 2011 intercompany sales are as follows: