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pearson ltd owns 100% ownership of acca ltd. on 1 july 2015 pearson ltd sells an item of equipment to acca ltd for $7.2 million.

pearson ltd owns 100% ownership of acca ltd. on 1 july 2015 pearson ltd sells an item of equipment to acca ltd for $7.2 million. this equipment cost pearson ltd $9.0 million and had accumulated depreciation of $3.6 million at the date of the sale. the remaining useful life of the equipment is assessed as 15 years and the tax rate is 30%.

required: provide consolidation journal entries for 30 june 2016 and 30 june 2017 to adjust for the above sale.

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