Question 4 (15 marks) Consolidation: intra-group transactions Hazelwood Ltd owns all the share capital in Colls Ltd and the following intra group transactions have occurred between the two companies. a) In April 2020 Hazelwood Ltd sold inventory to Colls Ltd for $90 000. This inventory had previously cost Hazelwood Ltd $75 000, and it remains unsold by Colls Ltd at the end of the period. (5 marks) b) On July 1, 2019, Colls Ltd sold a depreciable asset (Machinery) to Hazelwood 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. (5 marks) c) In August 2019 Colls Ltd sold inventory to Hazelwood 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 Hazelwood Ltd. Required: (5 marks) In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidated worksheet at 30 June 2020. The tax rate is 30%.