XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX 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 2023 to adjust for the above sale. Please answer asap
XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX 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 2023 to adjust for the above sale. Please answer asap
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY
Ltd for $145 000 when its carrying value in XXX 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 2023 to
adjust for the above sale. Please answer asap
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