Solution for: (answer at the bottom, unsure how they came to that answer)

Question 7 (7'- France Ltd owns all the capital of Paris Ltd. On 1 July 2015 France Ltd sells machinery to Paris Ltd for $216,000. The tax rate is 30% The machinery is shown in the records of France Ltd as: Machinery (COST) 166,000 Accumulated depreciation .(&,M) 166,000 89,000 Assume the remaining useful life of the machinery is 17 years 0 out of 10 points The treatment of the machinery in the group's perspective would be to add the following consolidation adjustment entries on the date of sales and every year after. Assuming the reporting date is 30 June 2022 Retained earnings Machinery Accumulated depreciation The tax effect of the above group elimination entry at 30 June 2022 is as follows: Deferred tax asset Retained Earnings The consolidation adjustment entries in rela ed to the depreciation adjustment of the machinery at 30 June 2022 are as follows: Accumulated depreciation Depreciation expense Retained earnings XXX Income tax expense Retained earnings Deferred tax asset Calculate and enter the amount of xxx (Retained earnings) above in the answer block below: Selected Answer: 0 [None Given] Correct Answer: a 49,059 i 1