7 Dingo transa consoli statem: Question 11.3: Intragroup transactions Dingo Ltd owns all of the shares of Bilby Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) On 1 January 2018, Dingo Ltd sold inventory costing $6000 to Bilby Ltd at a transfer price of $8000. On 1 September 2018, Bilby Ltd sold half these items of inventory back to Dingo Ltd, receiving $3000 from Dingo Ltd. Of the remaining inventory kept by Bilby Ltd, half was sold in January 2019 to Goanna Ltd at a loss of $200. (b) On 1 January 2019, Bilby Ltd sold an item of plant to Dingo Ltd for $2000. Immediately before the sale, Bilby Ltd had the item of plant on its accounts for $3000. Bilby Ltd depreciated items at 5%p.a. on the diminishing balance and Dingo Ltd used the straight- line method over 10 years, (e) On 1 July 2018, Dingo Ltd sold a motor vehicle to Bilby Ltd for $12 000. This had a carrying amount to Dingo Lid of 59600. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost. (d) During the 2017-18 period, Dingo Ltd sold inventory to Bilby Ltd for S9000, recording a before-tax profit of $1800. Half this inventory was unsold by Bilby Ltd at 30 June 2018, (e) Bilby Lid sells second-hand machinery. Dingo Ltd sold one of its depreciable assets (original cost 580 000, accumulated depreciation $64 000) to Bilby Ltd for S10 000 on 1 January 2019. Bilby Ltd had not resold the item by 30 June 2019. (1) On 1 May 2019, Bilby Lid sold inventory costing $300 to Dingo Ltd for S360 on credit. On 30 June 2019. only half of these goods had been sold by Dingo Ltd, but Dingo Ltd had paid S280 back to Bilby Ltd. (LO2 and LO3) (a) On tral iny inv of S (b) On Im S30 Ltd (c) On car rate (d) Dur reco at 30 (e) Bilb (orig on 1 (1) On cred Ding (LO2 ar Question 11.7: Consolidation worksheet