Ann ltd acquired all of the share capital of nelly ltd., Ask an Expert

Accounting

Ann Ltd acquired all of the share capital of Nelly Ltd.

Prepare the consolidation worksheet adjustment entry for the following intra-group transaction:-

Assume that the consolidation process is being undertaken at 30 June 2008, and that an income tax rate of 30% applies.

1) On 1 July 2007, Ann Ltd sold a motor vehicle to Nelly Ltd for $10,000. This had a carrying amount to Ann Ltd of $7,000. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M942149

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