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Joshua Limited has a 100% holding in Tree Limited. On the 1st January 2020 Tree Limited...
Joshua Limited has a 100% holding in Tree Limited. On the 1st January 2020 Tree Limited sold plant to Joshua Limited for $130 000. The plant had cost Tree Limited $160 000 and at the time of sale it had an accumulated depreciation balance of $45 000. Depreciation on plant is deducted on a straight-line basis by Tree Limited at 20% and by Joshua Limited at 10%. Assume an income tax rate of 30%.
Prepare the Consolidation Adjusting Journal Entries for the consolidated financial statements as at 30 June 2020 by adjusting for the sale by eliminating the gain, reducing the value of the asset, the income tax expense, the depreciation and the tax consequences of the depreciation reduction.
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ekkarill92 answered 2 years agoRelated Solutions
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