Multiple Choice
On 16 May 2017, Zebra Ltd sold equipment to its subsidiary Nando Ltd for $100 000, this asset having a carrying amount at time of sale of $80 000. The equipment was regarded by Zebra Ltd as a depreciable non-current asset, being depreciated at 10% p.a. on cost, whereas Nando Ltd records the machinery as inventory. The asset was sold by Nando Ltd before 30 June 2017. The worksheet entry for the year ended 30 June 2017 would include which of the following adjustments?
A) Dr Cost of sales 20 000
B) Cr Cost of sales 20 000
C) Dr Inventory 20 000
D) Cr Inventory 20 000
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The effect of an intragroup sale of
Q3: Where an intragroup sale of an asset
Q4: When an interest bearing loan is advanced
Q5: A parent entity sold a depreciable non-current
Q6: The elimination of the full effects of
Q7: The effect of an intragroup sale of
Q8: During the year ended 30 June
Q9: Where there is an intragroup sale of
Q10: Which of the following items is an
Q11: When a depreciable non-current asset is sold