Hello, i cant figure out how to get the depreciation expense for transaction e. This is the only transaction in 30 june 2016 period. The answer should be $150 but instead i am getting $300. Please do help me asap.

Exercise 28.3

Current and prior periods intragroup transfers of non-current assets

Sophie Ltd owns all the share capital of Ruby Ltd. The following transactions relate to the period ended 30 June 2017. Assume an income tax rate of 30%.

(a) On 1 July 2016, Sophie Ltd sold a motor vehicle to Ruby Ltd for $15 000. This had a carrying amount to Sophie Ltd of $12 000. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost.

(b) Ruby Ltd manufactures items of machinery which are used as property, plant and equipment by other companies, including Sophie Ltd. On 1 January 2017, Ruby Ltd sold such an item to Sophie Ltd for $62 000, its cost to Ruby Ltd being only $55 000 to manufacture. Sophie Ltd charges depreciation on these machines at 20% p.a. on the diminishing value.

(c) Sophie Ltd manufactures certain items which it then markets through Ruby Ltd. During the current period, Sophie Ltd sold for $12 000 items to Ruby Ltd at cost plus 20%. By 30 June 2017, Ruby Ltd has sold to external entities 75% of these transferred items.

(d) Ruby Ltd also sells second-hand machinery. Sophie Ltd sold one of its depreciable assets (original cost $40 000, accumulated depreciation $32 000) to Ruby Ltd for $5000 on 1 January 2017. Ruby Ltd had not resold the item by 30 June 2017.

(e) Ruby Ltd sold a depreciable asset (carrying amount of $22 000) to Sophie Ltd on 1 January 2016 for $25 000. Both entities charge depreciation in relation to these items at a rate of 10% p.a. on cost. On 31 December 2016, Sophie Ltd sold this asset to Dubbo Ltd, an external entity, for $20 000.

Prepare adjusting journal entries for the consolidation worksheet at 30 June 2016 and 30 June 2017.