Question
In: Accounting
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000...
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 30 percent. Required: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment. (provide the dates).
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ekkarill92 answered 2 years agoRelated Solutions
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000...
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for
$450000 when its’ carrying value in Liala Ltd book was $600000
(costs $900000, accumulated depreciation $300000). This plant has a
remaining useful life of five (5) years form the date of sale. The
group measures its property plants and equipment using a costs
model. Tax rate is 30 percent.
Required:
Pass the necessary entries on 30 June 2017 and 30 June 2018 to
eliminate the...
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000...
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for
$450000 when its’ carrying value in Liala Ltd book was $600000
(costs $900000, accumulated depreciation $300000). This plant has a
remaining useful life of five (5) years form the date of sale. The
group measures its property plants and equipment using a costs
model. Tax rate is 30 percent.
Required: Pass the necessary entries on 30 June 2017 and 30 June
2018 to eliminate the...
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000...
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for
$450000 when its’ carrying value in Liala Ltd book was $600000
(costs $900000, accumulated depreciation $300000). This plant has a
remaining useful life of five (5) years form the date of sale. The
group measures its property plants and equipment using a costs
model. Tax rate is 30 percent.
Required:
Pass the necessary entries on 30 June 2017 and 30 June 2018 to
eliminate the...
Black Ltd owns 100% of Canary Ltd. At 1 July 2016, Black Ltd sold an item...
Black Ltd owns 100% of Canary Ltd.
At 1 July 2016, Black Ltd sold an item of plant to Canary Ltd
for $210 000.
Black Ltd had originally paid $400 000 for the plant on 1 July
2014, when it had an expected useful life of 8 years.
The tax rate is 30%.
(a) To eliminate the gain or loss on sale of the
asset for the year, the group accountant processes the following
entry in the consolidation worksheet:
Dr Gain...
(16 marks) Wastewater Ltd acquired an item of plant on 1 July 2016 for $3 660...
Wastewater Ltd acquired an item of plant on 1 July
2016 for $3 660 000. When the item of plant was acquired, it was
initially assessed as having a life of 10000 hours. During the
reporting period ending 30 June 2017 the plant was operated for
3000 hours. At 1 July 2017 the plant had a remaining useful life of
7000 hours. On 1 July 2017 the plant underwent a major upgrade
costing $234 600. Management believes that this upgrade...
Question 2: (16 marks) Wastewater Ltd acquired an item of plant on 1 July 2016 for...
Question 2: Wastewater Ltd acquired an item of plant
on 1 July 2016 for $3 660 000. When the item of plant was acquired,
it was initially assessed as having a life of 10000 hours. During
the reporting period ending 30 June 2017 the plant was operated for
3000 hours.
At 1 July 2017 the plant had a remaining useful life of 7000
hours. On 1 July 2017 the plant underwent a major upgrade costing
$234 600. Management believes that...
a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The...
a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1
January 2015. The following transactions occurred between the two
entities:
On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for
$12,000, this inventory previously costed Liala Ltd $10,000. By 30
June 2016, Jordan Ltd had sold 20% of this inventory to other
entities for $3,000. The other 80% was all sold to external
entities by 30 June 2017 for $13,000.
During the 2016–17...
Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following...
Liala Ltd acquired all the issued shares of Jordan Ltd on 1
January 2015. The following transactions occurred between the two
entities:On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd
for $12,000, this inventory previously costed Liala Ltd $10,000. By
30 June 2016, Jordan Ltd had sold 20% of this inventory to other
entities for $3,000. The other 80% was all sold to external
entitiesby 30 June 2017 for $13,000.During the 2016–17 period,
Jordan Ltd sold inventory to...
Max Ltd acquires an item of machinery on 1 July 2016 for a total acquisition cost...
Max Ltd acquires an item of machinery on 1 July 2016 for a total
acquisition cost of $61,000. The life of the asset is assessed as
being six (6) years, after which time Max Ltd expects to be able to
dispose of the asset for $6,000. It is expected that the benefits
will be generated in a pattern that is best reflected by the
sum—of—digits depreciation approach. On 1 July 2019, owing to
unforeseen circumstances, the machinery is exchanged for...
On 1 July 2019, CRX Construction Ltd paid $150,000 cash to acquire an item of plant...
On 1 July 2019, CRX Construction Ltd paid $150,000 cash to
acquire an item of plant equipment. On this date it was estimated
that the item of plant equipment had a useful life of ten years and
a residual value of $20,000. CRX Construction Ltd uses the
revaluation model to measure items of property, plant and equipment
and the straight-line method of depreciation. CRX Construction Ltd
has a 30 June reporting date.
An independent valuer provided the following fair values...
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