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)