None XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYYLtd for $145 000 when its carrying value in XXX Ltd's accounts was $101 250 (cost $168 750,accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2023 toadjust for the above sale. Please answer asap

2. Adjust Depreciation Expense: Since YYY Ltd acquires the plant, it needs to depreciate the plant…

Answered: XXX Ltd acquires 100% interest in YYY…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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aaa Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 aax Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in aaax Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2023 to adjust for the above sale. Please answer asap
XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX Ltd’s accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2023 to adjust for the above sale.
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