(Module 1) in 2006, Puncor Resold for $77,000 Inventory That

Essay

(Module 1) In 2006, Puncor resold for $77,000 inventory that it had acquired from Suncor (an 80%-owned subsidiary) in 2005 for $55,000. Suncor's cost was $44,000. Suncor reported $500,000 of net income for 2006.
Required:
a. Prepare the general ledger entry required at the end of 2006 under the complete equity method.
b. Prepare the consolidation entry or entries required at 12/31/06.