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PLEASE HELP!!!!!!!!!! QUESTION 4: Intra-group Transactions (12 Marks) Yishun Ltd owns all the share capital in Colls Ltd and the following intra group transactions have
PLEASE HELP!!!!!!!!!!
QUESTION 4: Intra-group Transactions (12 Marks) Yishun Ltd owns all the share capital in Colls Ltd and the following intra group transactions have occurred between the two companies: - In April 2021, Yishun Ltd sold inventory to Colls Ltd for $90,000. This inventory had previously cost Yishun Ltd $75,000 and it remains unsold by Colls Ltd at the end of the period. - On July 1 2020, Colls Ltd sold a depreciable asset (Machinery) to Yishun Ltd costing $40,000 for $50,000. Colls Ltd had not changed any depreciation on the asset before the sale. Both entities depreciate assets at 15% p.a. on cost. - In August 2020, Colls Ltd sold inventory to Yishun Ltd for $100,000. This inventory had previously cost Colls Ltd $80,000. At the end of the period, one-quarter of this inventory was still held by Yishun Ltd. Required: In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidated worksheet at 30 June 2021. The tax rate is 30%. (12 marks)Step by Step Solution
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