One Clive Ltd owns 100% of Theo Ltd. On 1 July 2019, Clive Ltd sells surplus equipment to Theo Ltd for $180 000. The machinery had cost Clive Ltd a total of $120 000 and was four years old at the time of sale with accumulated depreciation amounting to $48 000. The remaining useful life of the machinery was assessed at six years with no residual value. The company tax rate is 30%. Required (10 marks) Prepare the consolidation journal entries to account for the sale of the non-current asset for the year ending 30 June 2020. Round any calculations to the nearest whole dollar.

Part One Clive Ltd owns 100% of Theo Ltd. On 1 July 2019, Clive Ltd sells surplus equipment to Theo Ltd for $180 000. The machinery had cost Clive Ltd a total of $120 000 and was four years old at the time of sale with accumulated depreciation amounting to $48 000. The remaining useful life of the machinery was assessed at six years with no residual value. The company tax rate is 30%. Required (10 marks) Prepare the consolidation journal entries to account for the sale of the non-current asset for the year ending 30 June 2020. Round any calculations to the nearest whole dollar