An item of Equipment owned by Piano Ltd was sold to Forte Ltd on 01/01/2021...
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Accounting
An item of Equipment owned by Piano Ltd was sold to Forte Ltd on 01/01/2021 for $485,021. The cost of the Equipment was $442,560 and its accumulated depreciation was $88,530 at the time of transfer. Forte Ltd estimated this item had an annual depreciation rate of 20% with no residual value. Tax rate 30%.
Required:
Prepare consolidation journal entries to eliminate intra-group non-current asset
transaction for the year ended 30/06/2023.
Dr. Retained earnings ______
Dr. equipment ______
Cr. Accumulated depreciation ______
Dr. Deferred tax asset ______
Cr. Retained earnings ______
Dr. Accumulated depreciation ______
Cr. Depreciation expense ______
Cr. Retained earnings ______
Dr. Income tax expense ______
Dr. Retained earnings ______
Cr. Deferred tax asset ______
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