In this case, Green Group purchased inventory from its subsidiary, Blue Group, at a price that includes a 25% markup over cost. To determine the amount to be included in the consolidated financial statements, we need to consider the underlying cost of the inventory, not the cost plus the markup, as the markup is not relevant when consolidating the parent and subsidiary's financials.
If Green Group bought the inventory from Blue Group at 125% above cost, and the cost is represented by the lower of the cost and net realizable value, then the cost would be 80% of the selling price, which would be 48,000 (80% of 60,000). However, since this is a transaction between the parent and subsidiary within the group, the inventory should be consolidated at the cost to the parent, which is the cost of production plus the 25% markup, totaling 60,000.
Therefore, the amount to be included in Green Group's consolidated financial statements with respect to this inventory would be 60,000.