On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). 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 30 percent. Required: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment.

Q: On 1 July 2019 Manila Ltd sold an item of plant to Tokyo Ltd for $600,000 when its carrying value in…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Tony Industries plan to sell a machine in the current tax year. The cost basis presented is…

A: There is gain on the sale of assets if the sale price exceeds the book value.

Q: Bold Ltd purchased machinery on 1 January 2021 at a cast of R1 200 000. A major inspection has to be…

A: Here's the breakdown:Original Cost: R1,200,000 (given)Depreciation Method: Straight-line…

Q: During the year ended 30 June 2020, Emily Ltd spent $300,000 on the development of a new range of…

A: IAS 38 prescribes specific conditions and criterias that need to be met to capitalize the cost.…

Q: On 1 January 2020 a company purchased some plant.   The invoice showed Cost of plant £61,000…

A: Capitalised cost of the asset means all costs related to purchase of asset along with all costs…

Q: Bold ltd purchased mactinery on 1 lanuary 2021 at a cast of R1200000 A major inspection has to be…

A: Here's a breakdown of the information and the calculation:Original Cost: R1,200,000 (includes…

Q: Explain briefly what you understand by the term “depreciation” as used by accountants. In what…

A:

Q: TAKULAH Traders Ltd purchased a machine for $650 000 and there was an accumulated depreciation…

A: As per AASB 116, a revaluation gain on any asset should be recognized in other comprehensive income…

Q: A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on 31 December…

A: Lets understand the basics.Journal entries refers to the entries which are recorded by the…

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: ar and tear allowance of 10% on the plant. Oscar Limited intends to recover the carrying amount of…

A: Deferred tax refers to the form of a liability reflected on the balance sheet of a company which…

Q: Oriole plc purchased a computer for £9.440 on January 1, 2021. Straight-line depreciation is used,…

A: Depreciation :— It is the allocation of depreciable cost of asset over the useful life of asset.…

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…

Q: Flowers Plc. owns a building that was acquired for £120, 000 on 1st July 2019. The year-end is on…

A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life years

Q: A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on  31 December…

A: Journal entries refers to the entries which are recorded by the businesses at the end of the period…

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.