France Ltd owns all the capital of Paris Ltd.

On 1 July 2015 France Ltd sells machinery to Paris Ltd for $115,000. The tax rate is 30%

The machinery is shown in the records of France Ltd as:

Machinery (COST)	93,000
Accumulated depreciation	(17,000)
	76,000

Assume the remaining useful life of the machinery is 14 years.

The treatment of the machinery in the group’s perspective would be to add the following consolidation adjustment entries on the date of sales and every year after. Assuming the date of consolidation is on 30 June 2019, the repeated group elimination entries are as follows:

Retained earnings	$39,000
Machinery		$22,000
Accumulated depreciation		$17,000
Deferred tax asset	$11700
Retained earnings		$11700

The consolidation adjustment entries in related to the depreciation adjustment of the machinery at 30 June 2019 are as follows:

Accumulated depreciation	(115,000 - 76,000) / 14 x 4
Depreciation expense		(115,000 - 76,000) / 14
Retained earnings		(115,000 - 76,000) / 14 x 3
Income tax expense
Retained earnings	xxx
Deferred tax asset

Calculate and enter the amount of xxx (Retained earnings of 'closed' income tax expense)