consolidated sale and cost of sale

rivision34.16/ Lexus has owns 60% of voting equity of Nexus. he following information relates to the results of Lexus and Nexus for the year. Nexus Lexus Revenue 350$ 150$ COS 200$ 60$ Gross profit =150$ =90$ During the year, Nexus sold goods to Lexus for $50,000. Lexus still had 40% of these goods in inventory at the year end. Nexus uses a 25% mark up on all goods. What were the consolidated sales and cost of sales of the Lexus group at the year end? Sales Cost Of Sales A $500,000 $210,000 B $500,000 $214,000 C $450,000 $210,000 D $450,000 $214,000 The answer is D. PUP= 50,000 x 25/125 x 40%= $4,000 Revenue(350+15-50*) =450,000 Cost of sales(200+60-50*+4)=214,000 *to remove intragroup sales Lexus group $’000 #why we include 100% of sale and COS of subsidiary in consolidated sale and COS ,why not only 60%?