FR bpp revision kit Need help on page 84 no 255

Janvis Co owns 30% of McLintock Co. During the year to 31 December 20X4 McLintock Co sold $2 mm of goods to Jarvis Co, of which 40% were still held in inventory by Jarvis at the year end. McLintoCK applies a mark-up of 25% on all goods sold. What effect would the above transactions have on group inventory at 31 December 20X4? Debit group inventory $48,000 Debit group inventory $160,000 Credit group inventory $48,000 No effect on group inventory Answer No effect on group inventory The transaction will be posted as: Debit Credit Share of profit of associate Investment in associate. No effect on group inventory According to the notes I copied from your lecture when associate sells to parent I should Dr group retained earnings and Cr group inventory.