Intra-group Transactions

Parent Ltd owns 90% of Subsidiary Ltd.On 1 July 20X1, Subsidiary Ltd sold an item of inventory to Parent Ltd for $12000 (the cost of the item to the subsidiary was $8000). The item is classified by the parent as a non-current asset with an estimated useful life of 5 years with no residual value.Assume a tax rate of 30%.

Round all your answers to the nearest dollar amount.If you believe no journal entry is required, select NULL for the account name, NA for the Dr or Cr, and enter 0 for the amount.Do not leave the amount blank.

Do not enter dollar ($) signs or commas (i.e. enter 10000 not $10,000).

Required:

(i) Prepare necessary journal entries in the consolidation journal to adjust for this transaction for the year ended30 June 20X2.

(ii) Prepare necessary journal entries in the consolidation journal to adjust for this transaction for the year ended30 June 20X3.

(iii) Prepare necessary journal entries in the consolidation journal to adjust the Non-Controlling Interests (NCI) allocation for the year ended30 June 20X3.