What does the $25 debit (Dr) adjustment to plant and equipment most likely represent?
| a. | Consolidation adjustment to eliminate the fair value increment on the plant and equipment at the date of acquisition. |
| b. | Consolidation adjustment to eliminate an unrealised prior year profit on sale of intragroup plant and equipment. |
| c. | Consolidation adjustment to eliminate an unrealised current year profit on sale of intragroup profit of the plant and equipment. |
| d. | Consolidation adjustment to recognise the fair value increment on the plant and equipment at the date of acquisition. |
Consolidated Entity $'000 6,930 1,280 5,190 1,130 ? ? De e e Consolidation worksheet for financial year ended 30 June 2021 Chandler Joey Adjustments Ltd Ltd Debit Ref Credit $'000 $'000 $'000 $'000 Sales revenue 4,620 2,840 530 f Less cost of goods sold Opening inventories 680 630 i 30 Add purchases 3,600 2,120 530 Less closing inventories 710 440 20 g Cost of goods sold 3,570 2,310 Gross profit 1,050 530 Dividend revenue 88 0 88 J Management fee revenue 35 0 35 d Interest revenue 0 9 9 Depreciation expense 160 125 | 10 Finance costs 181 35 9 Other expenses 204 49 35 c/d 35 Profit before tax 628 330 Tax expense 201 97 12 i/g/ 6 Profit after tax for the year 427 233 Retained earnings 1 July 2020 705 429 337 b/i/l 38 Dividends paid (57) (32) j 32 Dividends declared (121) (56) j 56 Retained earnings 30 June 954 574 2021 Issued capital 800 350 350 b Revaluation surplus 210 56 b/a 56 Fair value adjustment Shareholders' equity 1,964 924 Assets 78 117 Cash h 25 72 35 Accounts receivable 56 56 0 Dividends receivable 20 710 440 Inintaries 275 207 253 ? 304 ? 835 (57) (121) 1,208 800 210 o ? 195 82 Lcx noll 1,130 SUPUE 210 0 210 56 b/a 56 1,964 924 ? 117 195 78 72 56 35 h 25 82 0 k 710 440 56 20 750 g b 1,130 750 0 0 150 250 e 150 80 a Fair value adjustment Shareholders' equity Assets Cash Accounts receivable Dividends receivable Inventories Investment in Joey Ltd Loan to Chandler Ltd Land Buildings Accumulated depreciation Plant and equipment Accumulated depreciation Goodwill (net) Deferred tax asset Total assets Less liabilities Current taxes payable Accounts payable Dividend payable Loan from Joey Ltd Mortgage loan Deferred tax liabilities Net assets 720 1,500 (320) 850 (235) 780 (494) 450 (210) 1,050 2,280 (814) 1,325 (500) 25 I 30 94 85 35 59 b/c g/l 24 9 15 4,181 1,518 4,822 111 87 198 50 25 317 292 121 h k 56 56 121 0 150 150 1,253 290 401 0 a 24 1,654 314 ? 1,964 924 1,956.00 1,956.00