Parent Sells Plant to Subsidiary for $500 000 on January $\begin{array}{llcc} \text { Dr Profit on sale } &\$ 100000 \\ \text {Cr Plant } &&\$ 100000 \\\end{array}$

True/False

Parent sells plant to Subsidiary for $500 000 on January 1 20X9.The original cost to Parent was $400 000 on 1 January 20X7.The plant is depreciated straight line over ten years with no scrap value.
The correct consolidation elimination entry for the plant, at 1 January 20X9, is:
$\begin{array}{llcc} \text { Dr Profit on sale } &\$ 100000 \\ \text {Cr Plant } &&\$ 100000 \\\end{array}$