Fiona Ltd obtained control of Belinda Ltd on 1 January 20X2. The following items may require attention for group data adjustments:

• Belinda had shipped $50000 of inventory to Fiona. As at control date, Fiona had not received or recognised this shipment.
• Fiona had made a $10000 payment to Belinda for interest payment on an inter-company loan, but as of 1 January 20X2 Belinda had not received the payment.
• Belinda has an intangible copyright asset which is not recognised by Belinda but has a fair value of $80000.

The question refers to the consolidation worksheet prepared at control date.

With regard to the copyright asset, the correct consolidation data adjustment entry is:

Select one:

a.

None of the given answers is correct

b.

No entry required

c.

Dr Copyright $80 000; Cr Asset revaluation reserve $80 000

d.

Dr Copyright $80 000; Cr Fair value reserve $80 000

During the year ended 30 June 2020, a subsidiary sold inventory to its parent at a profit of $15,000. The inventory originally cost the subsidiary $98,000. At 30 June 2020 all the inventory was still on hand and it was all sold to an external party in July 2020. The perpetual inventory system is used. The consolidation entry to eliminate this transaction in the year ended 30 June 2021 would include which of the following line items?

a.

DrCost of sales$15 000

b.

DrCost of sales$98000

c.

CrCost of sales$15 000

d.

CrCost of sales$98000