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Grimm LTD sold an item of depreciable equipment to its subsidiary ,Bronte LTD ,for $100000 on 1/7/20x4.The equipment had originally been acquired by Grimm on 1/7/20x2 at a cost of $150000.
Assuming a five -year economic life for the equipment ,Grimm had been charging deprecation on this equipment at 20% straight -line .On acquiring the asset ,Bronte LTD assessed that the equipment had a remaining useful life of three years and therefore commenced depreciating the equipment over that period on a straight -line basis .Assume a tax rate of 30%
Required
1-prepare the consolidation journal entries required as at 30/6/20x4
2- Prepare the consolidation journal entries required as at 30/6/20x5
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