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X Ltd acquires 100% interest in Y Ltd. On 1 July 2018 X Ltd sells an item of plant to Y Ltd for $145 000 when its carrying value in X Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2019 to adjust for the above sale.

X Ltd acquires 100% interest in Y Ltd. On 1 July 2018 X Ltd sells an item of plant to Y Ltd for $145 000 when its carrying value in X Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2019 to adjust for the above sale.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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X Ltd acquires 100% interest in Y Ltd. On 1 July 2018 X Ltd sells an item of plant to Y Ltd for $145 000 when its carrying value in X Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2019 to adjust for the above sale.
Transcribed Image Text:X Ltd acquires 100% interest in Y Ltd. On 1 July 2018 X Ltd sells an item of plant to Y Ltd for $145 000 when its carrying value in X Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2019 to adjust for the above sale.
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