In preparing the consolidation worksheet for Pencil Corporation and its 60 percent–owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper: Worksheet Entries Debit Credit
Cash 87,000
Accounts Payable 87,000
To consolidate the unpaid balance for intercorporate inventory sales in 20X5.
Cost of Goods Sold 16,200
Income from Subsidiary 16,200

To consolidate unrealized inventory profits at December 31, 20X5.
Income from Subsidiary 189,000
Sales 189,000

To consolidate intercompany sales for 20X5.

Bolger's bookkeeper recently graduated from Oddball University, and although the dollar amounts recorded are correct, he had some confusion in determining which accounts needed adjustment. All intercorporate sales in 20X5 were from Feldman to Bolger, and Feldman sells inventory at cost plus 40 percent of cost. Bolger uses the fully adjusted equity method in accounting for its ownership in Feldman.

Required:
a. What percentage of the intercompany inventory transfer was resold prior to the end of 20X5?
b. Prepare the appropriate consolidation entries needed at December 31, 20X5, to prepare consolidated financial statements.