On 1 July 2021, Zoe Ltd Sold Equipment to Its

Multiple Choice

On 1 July 2021, Zoe Ltd sold equipment to its subsidiary, Nate Ltd, for $80 000. The equipment had a carrying amount at the time of sale of $70 000. The equipment was depreciated by Zoe Ltd at 10% p.a. on cost, while Nate Ltd applies a rate of 8%. The consolidation worksheet entry for the year ended 30 June 2022 would include the following adjustment in relation to depreciation:

A) DR Depreciation expense $1 000 CR Accumulated depreciation $1 000
B) DR Accumulated depreciation $1 000 CR Depreciation expense $1 000
C) DR Depreciation expense $800 CR Accumulated depreciation $800
D) DR Accumulated depreciation $800 CR Depreciation expense $800