Platypus Ltd owns all of the share capital of Wallaby 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 2016. Assume an income tax rate of 30%.

(a) During the year ending 30 June 2020, Wallaby Ltd sold $55 000 worth of inventory to Platypus Ltd. Wallaby Ltd recorded an $8 000 profit before tax on these transactions. At 30 June 2020, Platypus Ltd has one-quarter of these goods still on hand. (5 marks)

(b) A non-current asset with a carrying amount of $1 200 was sold by Wallaby Ltd to Platypus Ltd for $900 on 1 January 2020. Platypus Ltd intended to use this item as inventory, being a seller of second-hand goods. Both entities charged depreciation at the rate of 10% p.a. on the diminishing balance on non-current assets. The item was still on hand at