Intragroup transfers of inventories, non-current assets, services and dividends

Karen Ltd owns all the share capital of Anne Ltd. The income tax rate is 30%, and all income on sale of assets is taxable and expenses are deductible. All parts are independent unless specified.

(a) In February 2016, Karen Ltd sold inventories to Anne Ltd for $6000, at a mark-up of 20% on cost. One-quarter of this inventories were unsold by Anne Ltd at 30 June 2016, the rest were sold to external entities.