The Subsidiary transfers plant to the Parent for proceeds of 150000 on 1 July

The subsidiary transfers plant to the parent for

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17)The Subsidiary transfers plant to the Parentfor proceeds of $150,000 on 1 July 2007. At the date of transfer the plant had a book value to the Subsidiary of $60,000 (cost $100,000 net of accumulated depreciation $40,000) and a remaining useful life of 3 years. The consolidation worksheet entries for 30/6/09 include: a)Dr. Retained profits 1/7/08 $ 90,000 Cr. Accumulated depreciation $ 40,000 Cr. Plant at cost $ 50,000 b)Dr. Accumulated depreciation $ 40,000 Cr. Plant at cost $ 10,000 Cr. BCVR $ 30,000 c)Dr. Proceeds from sale $150,000 Cr. Carrying amount of plant sold $ 60,000 Cr. Pant (net) $ 90,000 d)Dr. Retained profits 1/7/08 $ 50,000 Cr. Pant (net) $ 50,000 e)No entries for this are required for 30/6/09 18)Refer to Question 43. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 will include the following deferred tax adjustment:
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Page 7 of 12 19)Refer to Question 43 and recall that the remaining useful life of the plant when transferred on 1 July 2007 is 3 years. The consequential adjustments for depreciation included in the consolidation worksheet entries for 30/6/09 are:
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Page 8 of 12 20)Refer Question 45. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 will include the following deferred tax adjustment: 21)The following diagram shows the shareholdings between A Ltd, B Ltd and C Ltd. 70% 60% Based on the information provided the subsidiaries of A Ltd are: a)A Ltd , B Ltd and C Ltd b)B Ltd and C Ltd c)B Ltd only d)C Ltd only e)No subsidiaries
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