(Module 2) Pedco Sold Inventory Costing $120,000 to Its 80%-Owned

Essay

(Module 2) Pedco sold inventory costing $120,000 to its 80%-owned subsidiary, Sedco, for $150,000 in 2006. Sedco resold most of this inventory for $210,000 in 2006. At 12/31/06, Sedco's balance sheet showed intercompany-acquired inventory on hand of $35,000.
Required:
Prepare the consolidation entry or entries required at 12/31/06 under the partial equity method.