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

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

On 1 June 2022, parent entity Forest Ltd sold inventory to subsidiary entity Wood Ltd for $80,000. The mark-up on sale was 25%. By 30 June 2020, 50% of the inventory had been sold to external customers for $90,000. What consolidation adjusting entries, if any, would be required on 30 June 2022 for this intra-group transaction? Group of answer choicesDr Retained Earnings $8,000; Cr COGS $8,000No consolidation entries are required as all the profit has become realizedDr Sales $90,000; Cr COGS $81,000; Cr Inventory $9,000Dr Sales $80,000; Cr COGS $72,000; Cr Inventory $8,000

A Ltd acquired 100% of B Ltd on 1 July 2020. At acquisition date, B Ltd had the following equity items. Retained Earnings Share Capital $90000 $130000 n the vear following the acauisition. B l td paid a bonus share dividend of $35000 out of pre-acauisition retained earningsDetermine the related consolidation adiustments on the consolidation worksheet for 30 June 2021?

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

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The consolidation adjustment entry would include the following line item: Group of answer choicesCR Inventories $30 000CR Inventories $18 000CR Inventories $24 000CR Inventories $6 000