Galway Ltd acquired all the issued shares of Dublin Ltd for $240 000 cash on 1 July 2019.

The following information is available at this acquisition date:

The equity of Dublin Ltd is provided below:

Share capital	$95 000
Retained earnings	80 000
General reserve	25 000

All the identifiable assets and liabilities of Dublin Ltd were recorded at fair value in the statement of financialposition. The company income tax rate is 30%.

The following transactions and events occurred for the year ended 30 June 2020:

1. Goodwill: Goodwill related to the acquisition of Dublin Ltd was impaired by $5 000.

2. Dublin Ltd sold inventories to Galway Ltd for $25 000, which had originally cost Dublin Ltd $22 000. At 30 June 2020, 75% of these inventories were sold externally.

3. On 1 July 2019, Galway Ltd sold one piece of its existing equipment to Dublin Ltd for $120 000. Galway Ltd purchased the equipment for $160 000 on 1 July 2016 and depreciated it over the original useful life of 10 years at zero residual value. Dublin Ltd plans to depreciate the equipment over its remaining useful life at zero residual value.

4. Dividends: Dublin(SUB) Ltd paid $18 000 interim dividends in September 2019, and Galway(PAR) Ltd declared $26 000(WILL PAID EXTERNALY) dividends in May 2020 (to be paid in October 2020).

5. Galway Ltd charged Dublin Ltd $90 000 for service fees. At 30 June 2020, 90% of this amount was paid by Dublin Ltd.

Required:

Please, check the adjustments. Is it correct ?

Dr	Cash	$ 120,000.00
CR	Proceeds from Sale of PPE		$ 120,000.00
Dr	Carrying amount of plant sold	$ 112,000.00
Dr	Accumulated dep	$ 48,000.00
Cr	Plant		$ 160,000.00
Dublin
Dr	Proceeds from Sale of PPE	$ 120,000.00
Cr	Cash		$ 120,000.00
The consolidation adjustment
Dr	Proceeds from Sale of PPE	$ 120,000.00
Cr	Carrying amount of plant sold		$ 112,000.00
Dr	PPE	$ 8,000.00
dr	Accumulated depreciation - plant	-$ 1,143
cr	Depreciation expense		-$ 1,143
dr	Income tax expense	-$ 343
cr	deferred tax liability		-$ 343
Dr	PPE		$ 8,000
Cr	Gain on Sale PPE	$ 8,000
DR	DTA	$ 2,400.00
CR	ITE		$ 2,400.00