Lane Ltd became a wholly owned subsidiary of Grant Ltd on 1 October 20X5.  The Grant Ltd Group has the year-end of 30 September.  On 1 April 20X6, Lane Ltd sold a plant to Grant Ltd for $430,000. At the date of sale, the plant had an original cost to Lane Ltd of $480,000 and accumulated depreciation of $90,000.  What entry would be posted as part of consolidation adjustments for the year ended 30 September 20X7 to eliminate the unrealised profit on the sale of the plant (ignore depreciation adjustments)? The applicable tax rate is 30%. a. Dr Gain on sale   $50,000Dr Plant                $50,000     Cr Accumulated depreciation       $100,000Dr Deferred tax asset           $15,000     Cr Income tax expense                  $15,000 b. Dr Opening Retained Earnings $40,000Dr Plant                                         $50,000     Cr Accumulated depreciation             $90,000Dr Deferred tax asset    $12,000     Cr Income tax expense               $12,000 c. Dr Accumulated depreciation $90,000     Cr Plant                                                 $50,000     Cr Opening Retained Earnings         $40,000Dr Income tax expense             $12,000     Cr Deferred tax liability                      $12,000 d. Dr Opening Retained Earnings  $40,000Dr Plant                                          $50,000     Cr Accumulated depreciation                $90,000Dr Deferred tax asset    $12,000    Cr Opening Retained Earnings         $12,000

S Ltd acquired land from its parent company P Ltd for $1 000 000. The land had originally cost P Ltd $100 000 (assume a tax rate of 30%). Two years later S sold the land outside the group for $1 200 000, the consolidation journal entry required would be (ignoring tax effects):a.Dr. Opening Retained Earnings             $200 000                Cr. Gain on Sale                                        $200 000b.Dr. Opening Retained Earnings            $900 000                Cr.  Gain on Sale                                      $900,000c.Dr. Opening Retained Earnings            $1 100 000                Cr. Gain on Sale                                        $1 100 000d.no entry required

Question text At the beginning of the financial year on 1 April 2020, a company had a balance on plant account of Sh 372,000 and on provision for depreciation of plant account of Sh 205,400. The company’s policy is to provide depreciation using the reducing balance method applied to the non-current assets held at the end of the financial year at the rate of 20% per annum. On 1 September 2020 the company sold for Sh 13,700 some plant which it had acquired on 31 October 2016 at a cost of Sh 36,000. Additionally, installation costs totalled Sh 4,000. During 2018 major repairs costing Sh 6,300 had been carried out on this plant and, in order to increase the capacity of the plant, a new motor had been fitted in December 2018 at a cost of Sh 4,400. A further overhaul costing Sh 2,700 had been carried out during 2019. The company acquired new replacement plant on 30 November 2020 at a cost of Sh 96,000, inclusive of installation charges of Sh 7,000. Calculate: (a) the balance of plant at cost at 31 March 2021 was Sh (b) the total (accumulated) provision for depreciation of plant at 31 March 2021 was Sh . This comprised: - Depreciation for year to 31 March 2017 of Sh - Depreciation for year to 31 March 2018 of Sh - Depreciation for year to 31 March 2019 of Sh - Depreciation for year to 31 March 2020 of Sh (c) the loss (profit/loss) on disposal of the plant was Sh this is because the book value of the plant at the date of sale was Sh 16,630

S Ltd acquired land from its parent company P Ltd for $1 000 000. The land had originally cost P Ltd $100 000 (assume a tax rate of 30%). On consolidation, the deferred tax asset will be recorded at: a. $300 000 b. $30 000 c. $270 000 d. not recorded

Kateri Ltd sold an item of plant to its subsidiary, Patrick Ltd, on 1 January 2023 for $50. The asset had cost A Ltd $60 and had a useful life of 6 years when acquired on 1 January 2021 from an external party. The adjustment necessary on consolidation to reflect the tax effect of the depreciation adjustment for the year ended 30 June 2023 will result in an increase in: Group of answer choicesincome tax expense.deferred tax liabilities.deferred tax assets.current tax liability.

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2021. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize aGroup of answer choices$240,000 loss on disposal.$96,000 gain on disposal.$96,000 loss on disposal.$60,000 loss on disposal.