Daniel Ltd. owns all of the shares of Scott Ltd. The following intragroup transactions, are all independent unless specified. Assume an income tax rate of 30%. Prepare the consolidation worksheet entries at 30 June 2020 to adjust for the effects of the following intragroup transactions (narrations are not required).

Part A

On 1 July 2019, Daniel Ltd. sold an item of plant costing $15 000 to Scott Ltd. for $18 000. Daniel Ltd. had not charged any depreciation on the plant before the sale. Both entities depreciate assets at 10% p.a. on cost. (5 marks)

Daniel Ltd. owns all of the shares of Scott Ltd. The following intragroup transactions, are all independent unless specified. Assume an income tax rate of 30%. Prepare the consolidation worksheet entries at 30 June 2020 to adjust for the effects of the following intragroup transactions (narrations are not required).

Part B

In February 2020, Scott Ltd. sold inventory to Daniel Ltd. for $9 000. This inventory cost Scott Ltd. $8 000. One-quarter of this inventory was unsold by Daniel Ltd. at 30 June 2020. (3 marks)

Daniel Ltd. owns all of the shares of Scott Ltd. The following intragroup transactions, are all independent unless specified. Assume an income tax rate of 30%. Prepare the consolidation worksheet entries at 30 June 2020 to adjust for the effects of the following intragroup transactions (narrations are not required).

Part C

Daniel Ltd. sold land to Scott Ltd. in December 2019. The land had originally cost Daniel Ltd. $20 000, but was sold to Scott Ltd for only $16 000. (3 marks)

Daniel Ltd. owns all of the shares of Scott Ltd. The following intragroup transactions, are all independent unless specified. Assume an income tax rate of 30%. Prepare the consolidation worksheet entries at 30 June 2020 to adjust for the effects of the following intragroup transactions (narrations are not required).

Part D

On 1 July 2019, Daniel Ltd. rented a spare warehouse to Scott Ltd. The rent was $300 and remained unpaid at 30 June 2020.

(2 Marks)