What is the amount of adjustment required

Assignment Help Accounting Basics
Reference no: EM132945033

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

Questions Cloud

Compare the main ways jobs can be redesigned : Compare the main ways jobs can be redesigned. Please provide ans in 600 words. No google reference
What is the required return on Amy portfolio : Suppose, the 3-month t-bill rate is currently 3% and the expected return on the market portfolio is 9%. What is the required return on Amy's portfolio
What is happening to lindsey attitude : -What can you say about the relationship between Lindsey and her director? Do you think he is a good manager/leader?
When will the note mature : Question - Isabel Consulting borrowed $100,000 on May 24, 2021, by signing a 60 day, 4% note payable. When will the note mature
What is the amount of adjustment required : On 1 July 2018, Parent Led sold an item of plant to Subsidiary Ltd for $63 000. What is the amount of adjustment required
What is the net amount to be presented in the statement : What is the net amount to be presented in the Statement of Comprehensive Income for the period ended 2018
What is the expected selling price of the bonds : The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of bonds
Welcome to strategic innovation simulation-back bay battery : You are the president of Back Bay Battery, Inc., a $240 million revenue division of a $40 billion consumer electronics manufacturer. Back Bay Battery produces t
Contribute towards competitive advantage of company : Discuss areas where the communities of practice can contribute towards competitive advantage of a company.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd