Sydney Ltd owns all of the shares of Mel Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (f) In May 2019, a SYD sold inventories to MEL Ltd for $60 000. The inventories had previously cost the SYD entity $48 000. The entire inventory is still held by the MEL Ltd at reporting date, 30 June 2019. Ignoring tax effects, which of the following is the adjustment entry in the consolidation worksheet at reporting date?
Intra-group transaction Question (worksheet
Sydney Ltd owns all of the shares of Mel Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%.
(f) In May 2019, a SYD sold inventories to MEL Ltd for $60 000. The inventories had previously cost the SYD entity $48 000. The entire inventory is still held by the MEL Ltd at reporting date, 30 June 2019. Ignoring tax effects, which of the following is the adjustment entry in the consolidation worksheet at reporting date?
Step by step
Solved in 2 steps