NCI Intra-group transactions.

Frank Ltd had acquired 70% of Barry Ltd, on 1/07/2016.

A. On 10 April 2019, Barry Ltd sold equipment to Frank Ltd for $50 000. At the time of the sale, the equipment had a carrying amount of $46 875 in the books of Barry Ltd. Winnaleah Wines had purchased the equipment on 30 June 2015 for $75 000 and depreciated it at 10% straight-line on cost with no residual value. Frank Ltd uses the same method of depreciation.

B. On 16 June 2019 Barry Ltd purchased inventory from Frank Ltd for $35 000. This inventory had previously cost Wayward Whisky $25 000. Barry Ltd had not paid Wayward Whisky Ltd for these goods as at 30 June 2019, and had already sold 18% to external parties. Barry Ltd paid the account payable on 9 July 2019 and sold the remainder of the goods to external parties by 30 June 2020 for a total profit of $15 000.

Required:

Prepare the journal entries and calculations required for these intra-group transactions.