Question
Koala Corp owns all of the shares of Wombat Co. In relation to the following intragroup transactions, all of them are independent unless specified. Assume
Koala Corp owns all of the shares of Wombat Co. In relation to the following intragroup transactions, all of them are independent unless specified. Assume an income tax rate of 30%.
a) On 1 March 2023, Wombat Co sold an item of plant to Koala Corp for $2,500. Immediately before the sale, Wombat Co had the item of plant on its accounts for $3,500. Wombat Co depreciated items at 6% p.a. on the diminishing balance, and Koala Corp used the straight-line method over 9 years.
b) On 1 August 2022, Koala Corp sold a motor vehicle to Wombat Co for $14,000. This had a carrying amount to Koala Corp of $11,200. Both entities depreciate motor vehicles at a rate of 12% p.a. on cost.
c) During the 2018-19 period, Koala Corp sold inventory to Wombat Co for $10,000, recording a before-tax profit of $2,000. Half of this inventory was unsold by Wombat Co at 31 December 2023.
d) Wombat Co sells second-hand machinery. Koala Corp sold one of its depreciable assets (original cost $85,000, accumulated depreciation $68,000) to Wombat Co for $11,000 on 1 March 2023. Wombat Co had not resold the item by 31 December 2023.
e) On 1 June 2023, Wombat Co sold inventory costing $350 to Koala Corp for $420 on credit. On 31 December 2023, only half of these goods had been sold by Koala Corp, but Koala Corp had paid $300 back to Wombat Co.
Prepare the consolidation worksheet adjusting entries for the preparation of the consolidated financial statements as at 31 December 2023.
help me please
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