Finance Accounting - Assessment Task

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Question 2: (10 marks)

X Ltd acquires 100% interest in Y Ltd. On 1 July 2018 X Ltd sells an item of plant to Y Ltd for $145 000 when its carrying value in X Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%.
Required: Provide consolidation journal entries for 30 June 2019 and 30 June 2020 to adjust for the above sale.

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