The subsidiary manufactures items of machinery which are used as property, plant and equipment by other

companies, including the parent. On $1$ January $2019,$ the subsidiary sold such an item to its parent for

$$79000,$ its cost to the subsidiary being only $$55000$ to manufacture. The parent charges depreciation on

these machines at $18\%$ p$.$a$.$ on cost$.$ Assume an income tax rate of $30\%.$ Prepare the consolidation

worksheet adjusting entries for preparation of the consolidated financial statements as at $30$ June $2020.$

Note: Round your answers to the nearest dollar.

Answer: