Question
Sunil Ltd acquired 100% of the share capital of Bigyan Ltd on 1 July 2015. On 1 July 2020 Bigyan Ltd sold plant to Sunil
Sunil Ltd acquired 100% of the share capital of Bigyan Ltd on 1 July 2015.
On 1 July 2020 Bigyan Ltd sold plant to Sunil Ltd for $200,000 (original cost on 1 July 2017 was $208,000 and the carrying amount when sold was $166,400). There has been no change in the original expected life of 15 years.
Consolidation entries are for the period ending 30 June 2021. Corporate tax rate is 30%.
Record the Journal entries on consolidation to eliminate the above intragroup sale (don't forget to make the tax adjustments)
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
