ABC acquired 100% of the shares of DEF on 01.01.2019 at a cost of $80,000,000. As at 31.12.2019, ABCs share capital is recorded as $150 million. The statement of financial position for DEF at the date of acquisition is as follows.

DEF

Statement of Financial Position as at 31.12.2019

	DEF ($000)
Assets
Non-current assets
Property Plant and Equipment	45,200
Less: Accumulated depreciation	(200)
	45,000
Current assets
Inventories	8,000
Receivables	4,000
Total current assets	12,000
Total assets	57,000
Equity and Liabilities
Equity	40,000
Retained Earnings	10,000
Current liabilities
Bank Overdraft	3,000
Payables	4,000
Total equity and liabilities	57,000

Required:

1. During the year, ABC sold a newly purchased Property Plant and Equipment (PPE) to DEF for $280,000 which had the cost of $200,000. The $80,000 gain on sale of the asset is included in the Retained Earnings of $16,000,000 for 2019 in the balance sheet of ABC. For the year 2019, DEF provided $70,000 depreciation for this PPE. The rate of depreciation of DEF for PPE is 25% straight-line.

Record the adjusting journal entries required for the consolidated financial statements. (Ignore the tax effects).