Question 4 X O marks On 1 July 20X2, Sub Ltd sold an item of plant to Parent Ltd for $30 000. The plant had cost Sub Ltd $96 000 and had a carrying value of $24 000. It was estimated that the remaining useful life of the plant was 2 years with a scrap value of $0 at the end of the period. Assume the data provided in the entries for Parent and Sub Ltd in the worksheet, the straight-line depreciation method and a 30 per cent tax rate. Parent Elimination Debit Credit ($) (5) Sub (S) ($) Consolidated (5) consolidated 15 000 96 000 Depreciation expense Profit before tax Less: Income tax expense Profit for the year Retained earnings opening Retained earnings - closing Plant 144 000 43 200 100 800 444 000 28 800 67 200 298 800 366 000 544 800 30 000 30 000 Less: Accumulated depreciation Deferred tax asset What is the consolidated depreciation expense, opening retained earnings and deferred tax asset amounts after effecting the elimination entries? Hint: This question is based on Scenario 2 - Sale of non current assets resources provided in the Unit. A. Depreciation expense $12,000, opening retained earnings $740,700, deferred tax asset $0. B. Depreciation expense $12,000, opening retained earnings $744,900, deferred tax asset $0. C. Depreciation expense $12,000, opening retained earnings $744,900, deferred tax asset $1800. D. Depreciation expense $15,000, opening retained earnings $744,900, deferred tax asset $1800. You selected B - This is incorrect. The correct answer is A TOTAL MARKS: 1 MARKS OBTAINED XO