Pfizer Ltd owns all of the shares of Biotech Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2021. Assume an income tax rate of 30%.

Part B

On 1 January 2020. Biotech Ltd sold the Machinery to Pfizer Ltd for $400 000. At the date of sale, Biotech Ltd had recorded a carrying amount of $320,000. Pfizer Ltd charged depreciation at the rate of 10% p.a. on this item.