Baker Ltd sold an item of machinery to its subsidiary Lanny Ltd for $8000. The original cost of the machinery was $12000 and the carrying amount of the machinery in the books of Baker Ltd at the time of sale was $10000. The consolidation journal entry at the end of the financial year is: a. Dr Profit on sale $4000 Cr Machinery $2000 Cr Accumulated depreciation $2000 b. Dr Machinery $6000 Cr Loss on sale $2000 Cr Accumulated depreciation $2000 c. Dr Machinery $4000 Cr Loss on sale $2000 Cr Accumulated depreciation $2000 d. Dr Machinery $4000 Cr Profit on sale $2000 Cr Accumulated depreciation $2000
Baker Ltd sold an item of machinery to its subsidiary Lanny Ltd for $8000. The original cost of the machinery was $12000 and the carrying amount of the machinery in the books of Baker Ltd at the time of sale was $10000. The consolidation
Dr Profit on sale $4000
Cr Machinery $2000
Cr
Dr Machinery $6000
Cr Loss on sale $2000
Cr Accumulated depreciation $2000
Dr Machinery $4000
Cr Loss on sale $2000
Cr Accumulated depreciation $2000
Dr Machinery $4000
Cr Profit on sale $2000
Cr Accumulated depreciation $2000
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