• The following intercompany transactions occurred during the year:
• Give two examples of Arm’s Length Transactions and Three Examples of Non Arm’s Length Transactions. (1 Mark)
• Find the indirect exchange rates on the two dates and show the impact of changes in exchange rates on Imports and Exports. (2 Marks)

• Parent loaned $12500 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan.
• Parent made a sale to Sub for $13000 cash. The inventory had originally cost Parent $12220. Sub then sold that same inventory to an outsider for $14000.
• Parent made a sale to Sub for $15000 cash. The inventory had originally cost Parent $11280. Sub has not yet sold that same inventory to an outsider. (Don’t forget equity method entry!)

Based on our “conceptual discussion,” what consolidation worksheet entries would you make?(2 Marks)