Grimm LTD sold an item of depreciable equipment to its subsidiary ,Bronte LTD ,for $100000 on 1/7/20×4.The equipment had originally been acquired by Grimm on 1/7/20×2 at a cost of $150000.
Assuming a five year economic life for the equipment ,Grimm had been charging deprecation on this equipment at 20% straight line .On acquiring the asset ,Bronte LTD assessed that the equipment had a remaining useful life of three years and therefore commenced depreciating the equipment over that period on a straight line basis .Assume a tax rate of 30%
Required
1 prepare the consolidation journal entries required as at 30/6/20×4
2 Prepare the consolidation journal entries required as at 30/6/20×5
Attachments:
IMG 1981 1 .JPG