Abra Ltd sold an item of plant to its subsidiary Cadabra Ltd on 1 January 2017 for $50 000. The asset had cost Abra Ltd $60 000 when acquired on 1 January 2015. At that time the useful life of the plant was assessed at 6 years. Rounded to the nearest dollar, the consolidation elimination entries at 30 June 2017 in relation to the sale of plant are which of the following?
| I. |
Plant |
Dr |
10 000 |
| Gain on sale |
Dr |
10 000 |
| Accumulated depreciation |
Cr |
20 000 |
| Deferred tax asset |
Dr |
3 000 |
| Income tax expense |
Cr |
3 000 |
| Accumulated depreciation |
Dr |
1 250 |
| Depreciation expense |
Cr |
1 250 |
| Income tax expense |
Dr |
375 |
| Deferred tax asset |
Cr |
375 |
| II. |
Accumulated depreciation |
Dr |
10 000 |
| Gain on sale |
Dr |
10 000 |
| Plant |
Cr |
20 000 |
| Deferred tax asset |
Dr |
3 000 |
| Income tax expense |
Cr |
3 000 |
| Accumulated depreciation |
Dr |
1 250 |
| Depreciation expense |
Cr |
1 250 |
| Income tax expense |
Dr |
375 |
| Deferred tax asset |
Cr |
375 |
| III. |
Plant |
Dr |
10 000 |
| Gain on sale |
Dr |
5 000 |
| Accumulated depreciation |
Cr |
15 000 |
| Deferred tax asset |
Dr |
1 500 |
| Income tax expense |
Cr |
1 500 |
| Accumulated depreciation |
Dr |
1 250 |
| Depreciation expense |
Cr |
1 250 |
| Income tax expense |
Dr |
375 |
| Deferred tax asset |
Cr |
375 |
| IV. |
Accumulated depreciation |
Dr |
15 000 |
| Gain on sale |
Dr |
5 000 |
| Plant |
Cr |
20 000 |
| Deferred tax asset |
Dr |
1 500 |
| Income tax expense |
Cr |
1 500 |
| Accumulated depreciation |
Dr |
1 250 |
| Depreciation expense |
Cr |
1 250 |
| Income tax expense |
Dr |
375 |
| Deferred tax asset |
Cr |
375
|