Sub made sale $6,000 (80% of Pur from Parent) at 20% margin, made 20% purchase return. Unrealised profit (20% margin) in Consolidated P&L a/c if any?

Unrealized profit is calculated on stock on hand available at year end purchased from group company.

In this case where subsidiary sold80% goods to third party and20% returned to parent company straight forwardly guide towards that no stock on hand available in subsidiary at year-end. Elaborated below:

Total purchased from Parent       : $6000 (6000 x80% /80%)

Total Sold to3rd party (COGS)      : $4800 (6000 x80%)

Total returned to parent Co             :  $1200 (6000 x20%)

Therefore no unrealized profit to be reported at year-end while consolidating the financial statements.