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Q3mmmmmmmmmm John Davies, the CFO of Springs Group Led is confused about the elimination entries your accounting firm has recorded on the consolidation worksheet. His

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John Davies, the CFO of Springs Group Led is confused about the elimination entries your accounting firm has recorded on the consolidation worksheet. His issue is as follows: (a) Two years ago, we had a sale of non-current assets within the Group. The adjustments to Depreciation expense and Accumulated Depreciation in the worksheet are very confusing. I don't believe it is necessary to make any adjustments to these accounts, as they have nothing to do with the sale of a non-current asset. I am also confused as to why there is an entry, when the sale was not in the current year. (9 marks) (b) I would also like an explanation as to why an equity account is sometimes included as part of the elimination entry for certain intragroup transactions. (6 marks) Required: Provide suitable explanations on the above concerns (a) and (b)

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