You are currently preparing the consolidated financial statements for your client Shiraz Ltd

You are currently preparing the consolidated financial statements for your client Shiraz Ltd.Shirax owns all the share capital of Riesling Ltd. The following intra-group transtactions have occured during the financial year ended 30 June 2013:

a) During the year ended 30 June 2013, Riesling Ltd. sold $50,000 worth of inventory to Shiraz Ltd. Riesling Ltd recorded a $10,000 profit before tax on these transactions. At 30 June 2013, Shiraz Ltd has one quarter of these good still on hand.