On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $350000 when its’ carrying value in Liala Ltd book was $500000 (costs $850000, accumulated depreciation $350000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 40 percent. Required: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment.

Q: im.3 answer must be in proper format or i will give down vote

A: First, we need to calculate the total deductions from the salaries. The deductions include income…

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Corporate accounting:   Branch of accounting that deals with the preparation of the financial…

Q: Lokton plc has a piece of equipment which it bought on 1 January 2014 for £1,000,000. The equipment…

A: The impairment loss is the loss suffered by the company when the fair value of the asset in lower…

Q: Lokton plc has a piece of equipment which it bought on 1 January 2014 for £1,000,000. The equipment…

A: Impairment loss is booked when the market value of the assets is less than the current book value of…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.