Corporate accounting

Singh Lid owns all the share capital of Liu Lid. The following transaction relates to the period ending 30 June 2022 1. On 1 July 2021. Singh Lid sold a motor vehicle to Liu Lid for $15,000. It had a carrying amount to Singh Lid of $12,000. Both entries depreciate motor vehicles at 10% p.a. on cost. II. Liu Led manufactures machinery items used as property, plant, and equipment by other companies, including Singh Lid. Singh Lid charges depreciation on these machines at 20% pa. on the diminishing value. On 1 January 2022, Liu Lid sold such an item to Singh Lid for $62,000, costing Liu Lid $55,000 to manufacture. Ill. During the current period, Liu Ltd sold $50,000 worth of inventory to Singh Lid. Liu recorded a profit of $10,000 before tax on these transactions On 30 June 2022, Singh has 25% of the inventory IV. On 1 June 2022, Singh declared a dividend of 20,000. Three days later, Liu declared a dividend of $10,000 v On 1 October 2021, Singh issued 500. 15% debentures with a nominal value of $200 On that date, Liu acquired 100 of these debentures Singh has agreed to pay interest half-yearly on 31 March and 30 September. The legal entities recognise accruals in their financial records Required: Assuming an income tax rate of 30%, provide adjustment journal entries to be included in the consolidation worksheet as at 30 June 2022 A Scenario I (3 marks) B. Scenario II (5 marks) C. Scenario III (2 marks) D. Scenario IV (2 marks) E Scenario V