Dingo Ltd owns all of the shares of Wombat Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%.

Part B

On 1 January 2020, Wombat Ltd sold the Machinery to Dingo Ltd for $100 000. At the date of sale, Wombat Ltd had recorded a carrying amount of $80,000. Dingo Ltd charged depreciation at the rate of 15% p.a. on this item.(5 marks)