Ying Ltd owns all of the shares of Yang Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%.

Part A On 1 May 2020, Ying Ltd sold merchandise for $330000 to Yang Ltd. Ying Ltd recorded $30 000 profit before tax. At 30 June 2020, Yang Ltd sold 70% of this merchandise to external parties.

Part B

On 1 January 2020, Yang Ltd sold the Machinery to Ying Ltd for $100 000. At the date of sale, Yang Ltd had recorded a carrying amount of $90,000. Ying Ltd charged depreciation at the rate of 20% p.a. on this item.