Coperate accounting

1. Why is it necessary to make adjustments for intragroup transactions? Ql- Intragroup transactions Koala Ltd owns all of the shares of Kangaroo Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specied, prepare the consolidation worksheet adjusting entries for preparation of the consolidated nancial statements as at 30 June 2016. Assume an income tax rate of 30%. (a) In April 2016, Koala Ltd sells inventory to Kangaroo Ltd for $12 000. This inventory had previously cost Koala Ltd $8000, and it remains unsold by Kangaroo Ltd at the end of the period. (b) All the inventory in (a) is sold to Cockatoo Ltd, an external party, for $16 500 on 19 June 2016. (0) Half the inventory in (a) is sold to Galah Ltd, an external party, for $7200 on 20 June 2016. The remainder is still unsold at the end of the period