1. I am confused as to why we would ever use equity accounts in intragroup transactions. Please explain the reason and provide at least two examples of when this account would be used in consolidation elimination entries.

2.If our Parent company sells inventory during the current year to the Subsidiary company and sells 100% of this inventory to an external party by financial year end (30 June), am I correct in saying we do not need to make an entry for this intra-group transaction? Please discuss using specific worksheet entries and account names, including tax effects in your explanation.

3.The next issue relates to the sale of non-current assets within the Group. The adjustments to Depreciation and Accumulated Depreciation in the worksheet are very confusing. I dont understand why we should be making any adjustments to these accounts as they have nothing to do with the sale of a non-current asset. Why do we need this entry and the related tax effects?