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Question - Peli Ltd owns all the issued equity of Kan Ltd. The two entities entered into the following inter-entity transactions during the year ended 30 June 2018:
a) On 25 June 2018, Kan Ltd paid a dividend of $20 000 and Peli Ltd paid a $25 000 dividend.
b) On 1 July 2017 Kan Ltd sold an item of plant to Peli Ltd for $500 000. At the time of sale, the plant was 10 years old and the carrying amount of the plant in Kan Ltd's accounts was $400 000 (cost $600 000, accumulated depreciation $200 000). Peli Ltd determined to depreciate the plant for another 20 years from the date of sale. Tax rate is 30 per cent.
C) On 1 May 2018, Kan provided services of $15,000 to Peli Ltd for cash.
Required - Prepare consolidation elimination entries.
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