Multiple Choice
On 16 May 2014,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 2014.The worksheet entry for the year ended 30 June 2014 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
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