Tammam Ltd Is the Parent of Shud Ltd B) C) $\begin{array}{llcc} \text { Sales} & 20000 \\ \text { Cost of sales } &&20000\\ \end{array}$

Tammam Ltd is the parent of Shud Ltd.On 1 January 20X3 Tammam sold inventory to Shud for $20 000.The profit margin on this inventory was $5 000.On 1 May 20X3, as a result of impairment testing, Shud was forced to write down the inventory to $10 000.As of end of financial year, June 30, Shud still held all of this inventory.
Which is the correct set of consolidation elimination entries for June 30 20X3 in respect of the inventory?

A) $\begin{array}{lrr}\text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Sales } & 20000 & \\\text { Cost of sales } & & 20000 \\\text { Cost of sales } & 5000 & \\\text { Inventory } & & 5000\end{array}$


B) $\begin{array}{llcc} \text { Sales } &20000 \\ \text {Cost of sales } &&20000 \\\\ \text { Cost of sales } &10000\\ \text {Inventory } &&10000\\\end{array}$


C) $\begin{array}{llcc} \text { Sales} & 20000 \\ \text { Cost of sales } &&20000\\ \end{array}$


D) $\begin{array}{llcc} \text { Sales } &20000 \\ \text {Impairment expense-inventory } &&5000 \\ \text { Cost of sales } &&25000\\\end{array}$