(a) In January 2014, Addison Ltd sells inventory to Erin Ltd for $15 000. This inventory had previously cost Addison Ltd $10 000, and it remains unsold by Erin Ltd at the end of the period.
(b) All the inventory in (a) above is sold to Olivia Ltd, an external party, for $20 000 on 2 February 2014.
(c) Half the inventory in (a) above is sold to Taylah Ltd, an external party, for $9000 on 22 February 2014. The remainder is still unsold at the end of the period.
(d) Addison Ltd, in March 2014, sold inventory for $10 000 that was transferred from Erin Ltd 3 years ago. It had originally cost Erin Ltd $6000, and was sold to Addison Ltd for $12 000.
(e) Erin Ltd sold some land to Addison Ltd in December 2013. The land had originally cost Erin Ltd $25 000, but was sold to Addison Ltd for only $20 000. To help Addison Ltd pay for the land, Erin Ltdgave Addison Ltd an interest-free loan of $12 000, and the balance was paid in cash. Addison Ltd has as yet made no repayments on the loan.
(f) On 1 July 2013, Addison Ltd sold a depreciable asset costing $10 000 to Erin Ltd for $12 000. Addison Ltd had not charged any depreciation on the asset before the sale. Both entities depreciate assets at10% p.a. on cost.
(g) On 1 July 2013, Addison Ltd sold an item of machinery to Erin Ltd for $6000. This item had cost Addison Ltd $4000. Addison Ltd regarded this item as inventory whereas Erin Ltd intended to use it as a non-current asset. Erin Ltd charges depreciation at the rate of 10% p.a. on cost.