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This is the consolidated journal entries. Please explain how we come to the figure of accumulated depreciation of $25,000 Further to E4.1, entities within the
This is the consolidated journal entries.
Please explain how we come to the figure of 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 yearsStep by Step Solution
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