For each of the following intragroup transactions, assume that the consolidation process is being undertaken at 30 June 2020, and that an income tax rate of 30% applies. Prepare the consolidation worksheet adjustment entries for these transactions or where adjustment entries are given, explain the transaction that took place. All parts are independent unless specified. Riverland Ltd owns all the share capital of Eastwood Ltd. i. Eastwood Ltd imports certain items from Germany which are then marketed and sold through Riverland Ltd. In October 2019, Eastwood Ltd sold such items costing $45 000 to Riverland Ltd for $55 000 on credit. Riverland Ltd sold 75% of these transferred items to external parties by 30 June 2020. Moreover, Riverland paid 60% of the outstanding amount to Eastwood on 1 May 2020. ii. In June 2019 Riverland Ltd sold inventories to Eastwood Ltd for $60 000 and recorded a profit of $12 000. All of these inventories were on hand at 30 June 2019. Eastwood Ltd had sold 70 per cent of these inventories to Dora Ltd (an external party) by 30 June 2020 but the rest remained on hand at the end of the reporting period. iii. Riverland Ltd manufactures items of machinery which are used as property, plant and equipment by other companies, including Eastwood Ltd. Riverland Ltd sold one of such machines to Eastwood Ltd for $90 000 on 1 January 2019. It cost $82 000 to Riverland Ltd manufacture this machine. Eastwood Ltd charges depreciation on similar machines at 10% p.a. on the diminishing value. iv. During the year ended 30 June 2020, Riverland Ltd paid a rent charge of $7 500 to Eastwood Ltd for the use of a warehouse owned by Eastwood Ltd. v. On 1 July 2019 Eastwood Ltd issued 3 000 debentures at the nominal amount of $100. The interest on debentures is 7% p.a. payable on 30 June each year. Debentures are to be redeemed after 5 years. Riverland Ltd took 20% of the debentures issued. vi. The following intragroup journal entries were recorded at 30 June 2020. Explain what sort of original transactions between Riverland Ltd and Eastwood Ltd would have led to these entries. Dividend revenue Dr 10 000 Dividend declared Cr 10 000 Dividend payable Dr 10 0000 Dividend receivable Cr 10 000