This is the consolidated journal entries.

How do we come to the accumulated depreciation of 25,000?

Further to E4.1, entities within the Tree Ltd group also undertook the following intragroup transactions during 207 and 208. The tax rate is 30% for all accounting periods. 1 On 1 July 207 Tree Ltd sold an item of plant to Branch Ltd for $500000 in cash. The original cost of the plant was $600000. Tree Ltd had adopted an accounting policy whereby the plant was being depreciated on a straight line basis over its useful life of six years. The carrying amount of the plant in Tree Ltd financial statements at the date of sale was $400000. Subsequent to the transfer, Branch Ltd depreciated the plant on a straight line basis over its remaining useful life of four years