XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX 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 2023 to adjust for the above sale. Please answer asap
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- aaa Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 aax Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in aaax 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 2023 to adjust for the above sale. Please answer asapWombat Ltd has acquired all the shares of Emu Ltd. During 2020-2021, the following transactions have occurred: Wombat Ltd acquired a motor vehicle from an external vendor for $35,000 on 1 July 2020, 20% depreciation p.a., and sells it to its subsidiary, Emu Ltd, for $32,000 on the same day. Emu Ltd charges 25% depreciation p.a. on the vehicle. Prepare the consolidation worksheet entries at 30 June 2021 (current year). Prepare the consolidation worksheet entries at 30 June 2022 (next yearXXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX 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 2023 to adjust for the above sale.
- Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, the parent sells the building to an 80% owned subsidiary for $4.000,000. The subsidiary will use the same 10-year useful life. How much Depreciation Expense will the subsidiary record in 2020 How much is consolidated Depreciation expense in 2020 What two worksheet entries are required for year-end 2020 (hint: entries TA and ED)Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, parent sells building to 80% owned subsidiary for $4,000,000. Subsidiary will use the same 10 year depreciable life. How much depreciation expense will the subsidiary record in 2020. How much is consolidated depreciation expense in 2020. 3. What two worksheet entries are required for year end 2020 (hint: entries TA and ED)On January 1, 2020, Parent Corporation purchased equipment from its 70% owned subsidiary for $360,000. The total useful life of the equipment was 15 years when Sub originally purchased it on January 1, 2015 for $450,000. Both Parent and Sub use straight- line depreciation. Required: a. Prepare the December 31, 2020 consolidation entry in general journal format. 5. Prepare the December 31, 2023 consolidation entry in general journal format. c. Repeat requirement (b), assuming instead that this had been a downstream sale.
- Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, parent sells building to 80% owned subsidiary for $4,000,000. Subsidiary will use the same 10 year depreciable life. a)How much depreciation expense will the subsidiary record in 2020. b)How much is consolidated depreciation expense in 2020. c)What two worksheet entries are required for year end 2020 (hint: entries TA and ED) please show full explanations for a,b, and cDEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its fair value at ₱1,400,000. The entity acquired the equipment by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD method of depreciation, and the equipment’s useful life is five (5) years with a 10% residual value based on its cost, what is the carrying value of the equipment as of December 31, 2020? A. ₱ 535,600 B. ₱ 432,600 C. ₱ 659,200 D. ₱ 370,800Alankar Ltd. commenced business on 1st January 2018, when they purchased plant and equipment for 9,00,000. They adopted a policy of charging depreciation at 15% per annum on diminishing balance basis and over the years, their purchases of plants have been as follows01/01/2019 - Rs. 3,50,000 01/01/2022 - Rs. 4,00,000 On 1/1/2022 it was decided to change the method and rate of depreciation to straight line basis. On this date remaining useful life was assessed as 6 years for all the assets purchased before 1/1/2022 with no scrap value and 10 years for the asset purchased on 1/1/2022. Prepare depreciation schedule for 5 years. Books of accounts are closed on 31st December every year.
- ABC Ltd acquires some machinery at a cost of $500 000 on 1 July 2021. On 30 June 2022, the machinery, which has an accumulated depreciation balance of $80 000, is assessed as having a fair value equal to $400 000. ABC Ltd measures machinery at fair value. Required: Provide the journal entries to reflect the revaluation decrement.in Reynolds buys building (10 year useful life) on January 1, 2019 for $1,000,000. Straight line depreciation is used. On the same day, Reynolds sells building to 90% owned subsidiary for $1,200,000. Subsidiary also uses a remaining useful life of 10 years. What is the appropriate worksheet entry for "excess depreciation" that must be prepared at December 31, 2019? shift O Dr. Depreciation Expense $120,000. Cr. Accumulated Depreciation $120,000 O Dr. Depreciation Expense $20,000. Cr. Accumulated Depreciation $20,000 tab O Dr. Accumulated Depreciation $20,000 Cr. Depreciation Expense $20,000 caps lock O Dr. Accumulated Depreciation $120,000. Cr. Depreciation Expense $120,000 esc 1 9,680 ! 1 Q A T control option Z 72 W S OCT 25 #3 X H command 80 F3 E D $ 4 с 160 000 000 F4 R tv F 175⁰ % F5 V T GPKT Ltd acquired 80% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1 January 2021 except for machinery that were undervalued by R 550 000. The machine was purchased on 1 January 2020 for R1 250 000 and had a useful life of 5 years. No adjustments at acquisition for the above matter. Prepare the journal entries (with narrations) for the year ended 31 December 2022. Assume a tax rate of 30%SEE MORE QUESTIONS