On 16 May 2017, Z Ltd Sold Equipment to Its

Multiple Choice

On 16 May 2017, Z Ltd sold equipment to its subsidiary, N Ltd, for $75 000. The equipment had a carrying amount at time of sale of $60 000. The equipment was depreciated by Z Ltd at 10% p.a. on cost, while N Ltd applies a rate of 8%. The consolidation worksheet entry for the year ended 30 June 2017 would include the following adjustment in relation to depreciation:

A) Dr Depreciation expense $1 680 Cr Accumulated depreciation $1 680
B) Dr Accumulated depreciation $1 680 Cr Depreciation expense $1 680
C) Dr Depreciation expense $2 100 Cr Accumulated depreciation $2 100
D) Dr Accumulated depreciation $2 100 Cr Depreciation expense $2 100