On 1 July 2022 David Ltd acquired a 100 per cent interest in Sandy Ltd .On 1 July 2022 David Ltd sells an item of plant to Sandy Ltd for $880 000.

This plant cost David Ltd $1 million, is four years old and has accumulated depreciation of $400 000 at the date of the sale.

The remaining useful life of the plant is assessed as six years.

The tax rate is 30 per cent.

Required:

Calculate Gain or Loss on sales of the plant and prepare the journal entry.