MPA505 Corporate Accounting Question 9 Not yet Question 7 [Total: 23 marks] - b + c answered The financial year of Peacock Lid and Dove Lid started on 1 July of each year and ended on 30 June of the Marked out of following year. 14.00 On 1 July 2020 Peacock Lid acquired a 100 percent (100%) interest in Dove Lid. The following information Flag relates to the financial year ended 30 June 2021. The tax rate is 30 percent (30%). question On 1 July 2020 Peacock Lid sold an excavator to Dove Lid for $2 600 000for cash. At the time of sales, the purchase price and accumulated depreciation of the excavator in Peacock Lid's accounts were $3 000 000 and $1 200 000 respectively. The excavator is assessed as having a remaining useful life of five years. The Group has a policy of measuring property, plant, and excavator using the 'cost model'. The group uses the straight- line method of depreciation. Dove Lid sold $120 000 of inventory to Peacock Lid. The inventory cost Little Lid $90 000 to produce the opening inventory of Peacock Lid on 1 July 2020 including inventory acquired from Dove Lid for $18 000 that cost Dove Lid $14 000 to produce. The closing inventory of Peacock Lid includes inventory acquired from Dove Lid at a cost of $40 000, which cost Dove Lid $30 000 to produce. Required b) Provide all journal entries related to the intragroup sales of inventory. (10 marks) c) When we are preparing consolidated financial statements, will the financial statements of the parent entity, or the subsidiary companies, at the beginning of the financial period reflect prior period consolidation adjustments? Justify your answer. (4 marks) 1 ART