Addison Ltd owns all of the share capital of Erin Ltd. In relations 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 2014. Assume an income tax rate of 30% and that all income on sale of assets is taxable and expenses are deductible.

a.) In January 2014, Addison Ltd sells inventory to Erin Ltd for $15000. This inventory had previously cost Addison Ltd $10000, 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 $20000 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 reminder is still unsold at the end of the period.

d.) Addison Ltd, in March 2014, sold inventory for $10000 that was transferred from Erin Ltd 3 years ago. It had originality cost Erin Ltd $6000, and was sold to Addison Ltd for $12000.

e.) Erin Ltd sold some land to Addison Ltd in December 2013. The land had originally cost Erin Ltd $25000, but was sold to Addison Ltd for only $20000. To help Addison Ltd pay for the land, Erin Ltd gave Addison Ltd an interest-free loan of $12000, 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 $10000 to Erin Ltd for $12000. Addison Ltd had not charged any depreciation on the asset before the sale. Both entities depreciate assets at 10% 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.