(Solved): Ex. 8-3 Pele Corporation acquired 70% of the outstanaing common stock of Shad Company on August ...

Ex. 8-3 Pele Corporation acquired $70^{?}\%$ of the outstanaing common stock of Shad Company on August 1, Year 2. During the year ended July 31. Year 3. Pele sold merchandise to Shad in the amount of $\$350,000$; the merchandise was priced at $30\%$ above Pele's cost. Shad had $40\%$ of this merchandise in inventories on July 31. Year 3. Make the journal entries for the transactions for both Pele and Shad and the elimination entry for year end