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Parent Ltd owns 80% of Subsidiary Ltd. On 1 July 20X1 Subsidiary Ltd sold Plant to Parent Ltd. Details regarding the transaction are as follows:
Parent Ltd owns 80% of Subsidiary Ltd. On 1 July 20X1 Subsidiary Ltd sold Plant to Parent Ltd. Details regarding the transaction are as follows: Intracompany sale price $4000 Original cost of plant to Subsidiary Ltd $60000 Accumulated depreciation on Subsidiary's books on date of sale $30000 Plant original useful life Plant remaining useful life at date of sale 5 years Salvage value $0 Tax rate 30% 10 years Plant is depreciation on a straight-line basis by both Parent Ltd and Subsidiary Ltd. Round all your answers to the nearest dollar amount. If you believe no journal entry is required, select NULL for the account name, NA for the Dr or Cr, and enter o for the amount. Do not leave the amount blank. alvage value ax rate Plant is depreciation on a straight-line basis by both Parent Ltd and Subsidiary Ltd. Round all your answers to the nearest dollar amount. If you believe no journal entry is required, select NULL for the account name, NA for the Dr or Cr, and enter o for the amount. Do not leave the amount blank. Do not enter dollar ($) signs or commas (i.e. enter 10000 not $10,000). Required: (1) Prepare any necessary journal entries in the consolidation journal to adjust for this transaction for the year ended 30 June 20X3
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