What is the amount of adjustment required

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Problem - Parent Ltd owns all the share capital of Subsidiary Ltd. On 1 July 2018, Parent Led sold an item of plant to Subsidiary Ltd for $63 000. This plant had a carrying amount to Parent Ltd of $33 000 and was considered by Subsidiary Ltd to have a further 4-year useful life. The tax rate is 30%. What is the amount of adjustment required for the consolidated 'depreciation expense' in relation to this plant when preparing the consolidated financial statements at 30 June 2020? Round your answer to the nearest dollar if necessary.

Reference no: EM132945033

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