Answer:
We should eliminate 3,000 revenue for this sale as is considered intra-entity therefore, there is no gain realized.
Explanation:
The transactions intra-entity should be eliminated.
We should eliminate the revenue from the goods that are still in the inventory of the investee.
inventory sold: 300,000
remaining inventory: 50,000
remaining goods 50,000/300,000 = 1/6
Then, total revenue: 300,000 - 240,000 = 60,000
1/6 of this revenue is still in the investee 60,000 x 1/6 = 10,000
then we should eliminate the percentage of ownership we got on the investee
30% of this belong to the investor so it should be eliminated while the other 70% is kept.
10,000 x 30% = 3,000
