Apple Ltd owns all the share capital of Orange Ltd. In relation to the following intra-group transactions, prepare the notional adjusting journal entries for the consolidation worksheet at financial year end 30th June, 2017, the prevailing tax rate being 20%.

a) In January 2017, Apple Ltd sold inventory to Orange Ltd for $20 000. This inventory had cost Apple Ltd $12 000, and it remains unsold by Orange Ltd till the end of the current period.

b) The entire inventory in (a) above is sold to Pear Ltd, an external party, for $20 000 on 3rd February, 2017.

c) Half the inventory in (a) above is sold to Ginger Ltd, an external party, for $12 000 on 23rd February, 2017. The remainder is still unsold at the end of the current period.