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| A parent company sells inventory costing $100,000 at a mark up of 20% to a wholly owned subsidiary. At the end of the reporting period half of this inventory remains unsold. Which one of the following is the required consolidation adjustment? A Reduce group inventory by $100,000 as the sale was not made to a third party B Increase group inventory by $50,000 as half of the inventory remains unsold C No adjustment is needed because intra-group trading cancels on consolidation D Reduce group inventory by $10,000 and reduce group profits by $10,000 to eliminate the unrealised profit in inventory |