Leo Ltd owns 90% of the share capital of Command Ltd.

On 1 January 2020, Command Ltd sold machinery to Leo Ltd for $80 000 cash. This machinery was carried at $65 000 in the records of Command Ltd at the time of sale.Leo depreciates the machinery using 10% straight-line method.The income tax rate is 30%.

A junior accountant working for Leo Ltd recorded the following consolidation adjustment for 30 June 2020:

Proceeds on sale of machineryDr80 000

CA of machinery soldCr65 000

MachineryCr15 000

Deferred tax assetDr4 500

Income tax expenseCr4 500

NCI share of profit/lossDr1 050

NCICr1 050

Accumulated depreciationD1 500

Depreciation expenseCr 1 500

Income tax expenseDr450

Deferred tax assetCr450

Discuss whether the entries are correct and complete.