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Summer Ltd gained control of Kitty Ltd on 31 December 2017. On that date, the carrying amount of Kitty Ltd's machine was $15,000 lower than
Summer Ltd gained control of Kitty Ltd on 31 December 2017. On that date, the carrying amount of Kitty Ltd's machine was $15,000 lower than its fair value. The machine was purchased at a cost of $100,000 and had a residual value of zero. On 31 December 2017, the machine had a remaining useful life of 5 years. For the year ended 31 December 2020, the consolidation adjustment in relation to the depreciation of the machine will include the following line: Question 6Answer a. Dr Accumulated depreciation - machine $6 000 b. Dr Depreciation expense $6 000 c. Dr Retained profits (SOP) $6 000 d. Dr Retained profits (SOP) $3 000
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