Division corporation owns 85% of Regional operations Company. During 2005 division sells inventory costing $30,000 to regional for $40,000.

Division corporation owns 85% of Regional operations Company. During 2005 division sells inventory costing $30,000 to regional for $40,000. regional does not sell any of this inventory to unrelated parties before the end of 2005. During 2006 division sells inventory costing $50,000 to regional for $65,000.ALso during 2006 regional sells all the inventory pruchased in 2005 and 2006 to unrelated entities. What is the adjustment to cost of goods sold in the 2006 worksheet elimination? 3) Little Company, a 70 percent–owned subsidiary of Giant Corporation, sold a building to Giant on May 1, 2005, for $480,000. The building had a cost of $850,000 and accumulated depreciation of $430,000 at the date of sale. The building is depreciated using the straight-line method and an estimated remaining life of 10 years. In the preparation of the 2006 consolidated financial statements, what is the dollar amount of the worksheet elimination to 2006 Retained Earnings with respect to this transaction?