Prepare the consolidation journal entries

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Question - B Ltd purchased an asset for $200 000 on 1 July 2015. This asset has a five year life and is depreciated straight line for both accounting and taxation purposes. B Ltd sold this asset to A Ltd on 1 Jul 2017 for $150 000. A Ltd owns 80% of the share capital of B Ltd.  For the year ended 30 June 2019, B Ltd made an after tax profit of $500 000.  The company tax rate is 30%.

Required - Prepare the consolidation journal entries for 2018 and 2019 to adjust for this asset sale, and calculate the NCI share of B Ltd as at 30 June 2019. Show your workings.

Reference no: EM132739777

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