Tians owns all the share capital of Veronisi. The following transactions relate to the period ended December 31, 2013.

1. On January 1, 2012, Tians sold a motor vehicle to Veronisi for $15,000. This had a carrying amount to Tians of $12,000. Both entities depreciate motor vehicles on a straight-line basis over 10 years.

2. On June 30, 2013, Veronisi sold machinery to Tians for $62,000, its cost to Veronisi being only $55,000. Tians charges depreciation on these machines at 20% p.a. on cost.

3. Tians manufactures certain items that it then markets through Veronisi. During the current period, Tians sold for $12,000 items to Veronisi at cost plus 20%. Veronisi has sold 75% of these transferred items at December 31, 2013.

4. Veronisi also sells second-hand machinery. Tians sold one of its depreciable assets (original cost $40,000, accumulated depreciation $32,000) to Veronisi for $5,000 on June 30, 2013.Veronisi had not resold the item by

December 31, 2013.

5. Veronisi sold a depreciable asset (carrying amount of $22,000) to Tians on January 1, 2012, for $25,000. Both entities charge depreciation at a rate of 10% p.a. on cost in relation to these items. On June 30, 2013, Tians sold this asset to Avonara for $20,000.

Required

Assuming an income tax rate of 30%, provide adjustments to be included in the consolidated financial statement as at December 31, 2013.