Question 6: Intra-group transaction Question (worksheet adjustment entries for the following independent transactions) Sydney Ltd owns all of the shares of Mel 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 2019. Assume an income tax rate of 30%. (a) SYD Ltd sold inventory to MEL Ltd on 1 September 2018 for $30000. This inventory had cost SYD Ltd \$18 000 . One-third of the inventory was sold by Mel Ltd to QLD Ltd for \$14 000 and one-third to ADL Ltd for \$14 200. (b) SYD Ltd manufactures certain items which it then markets through MEL Ltd. During the current period, SYD Ltd sold items for $60000 to MEL Ltd at cost plus 20%. MEL Ltd has sold 75% of these transferred items at 30 June 2019. (c) During June 2019, MEL Ltd declared a $3000 dividend. The dividend was paid in August 2020. (d) In January 2019, MEL Ltd paid a \$5 000 interim dividend. (e) SYD Ltd sold a warehouse to MEL Ltd for $150000 on 1 January 2019. This had originally cost SYD Ltd $120 000 when acquired on 1 January 2017 . At that time the useful life of the warehouse was assessed at 10 years. (f) In May 2019, a SYD sold inventories to MEL Ltd for $60000. The inventories had previously cost the SYD entity $48000. The entire inventory is still held by the MEL Ltd at reporting date, 30 June 2019. (g) SYD Ltd sold an item of plant to its subsidiary Mel Ltd on 1 January 2019 for $50000. The asset had cost SYD Ltd $60000 when acquired on 1 January 2015 . At that time the useful life of the plant was assessed at 6 years. \begin{tabular}{c} i \\ \hline \end{tabular}