Intra-group Transactions REF No. 69 Parent Ltd owns 80% of Subsidiary Ltd. On 1 July 20X1 Subsidiary Ltd sold Plant to Parent Ltd. Details regarding the transaction are as follows: Intracompany sale price $43000 Original cost of plant to Subsidiary Ltd $59000 Accumulated depreciation on Subsidiary's books on date of sale $29500 Plant original useful life 10 years Plant remaining useful life at date of sale 5 years Salvage value $0 Tax rate 30% Plant is depreciation on a straight-line basis by both Parent Ltd and Subsidiary Ltd. Required: (i) Prepare any necessary journal entries in the consolidation journal to adjust for this transaction for the year ended 30 June 20X3. Dr 4050 Plant Cr (Eliminate the intra-group gain/loss on the sale) Dr Cr Depreciation expense (Adjustment to depreciation expense) Dr Income tax expense Cr (Adjustment to tax expense resulting from adjustment to depreciation expense) (ii) Prepare any necessary journal entries in the consolidation journal to adjust the Non- Controlling Interests (NCI) allocation for the year ended 30 June 20X3. INCI Dr Cr (NCI adjustment resulting from elimination of intra-group gain/loss) Dr INCI Cr (NCI adjustment resulting from prior year's depreciation expense adjustment) Dr INCI Cr |(NCI adjustment resulting from current year's depreciation expense adjustment) Intra-group Transactions REF No. 69 Parent Ltd owns 80% of Subsidiary Ltd. On 1 July 20X1 Subsidiary Ltd sold Plant to Parent Ltd. Details regarding the transaction are as follows: Intracompany sale price $43000 Original cost of plant to Subsidiary Ltd $59000 Accumulated depreciation on Subsidiary's books on date of sale $29500 Plant original useful life 10 years Plant remaining useful life at date of sale 5 years Salvage value $0 Tax rate 30% Plant is depreciation on a straight-line basis by both Parent Ltd and Subsidiary Ltd. Required: (i) Prepare any necessary journal entries in the consolidation journal to adjust for this transaction for the year ended 30 June 20X3. Dr 4050 Plant Cr (Eliminate the intra-group gain/loss on the sale) Dr Cr Depreciation expense (Adjustment to depreciation expense) Dr Income tax expense Cr (Adjustment to tax expense resulting from adjustment to depreciation expense) (ii) Prepare any necessary journal entries in the consolidation journal to adjust the Non- Controlling Interests (NCI) allocation for the year ended 30 June 20X3. INCI Dr Cr (NCI adjustment resulting from elimination of intra-group gain/loss) Dr INCI Cr (NCI adjustment resulting from prior year's depreciation expense adjustment) Dr INCI Cr |(NCI adjustment resulting from current year's depreciation expense adjustment)