Question: baker ltd sold an item of machinery to its subsidiary...

Baker Ltd sold an item of machinery to its subsidiary Lanny Ltd for $8000. The original cost of the machinery was $12000 and the carrying amount of the machinery in the books of Baker Ltd at the time of sale was $10000. The consolidation journal entry at the end of the financial year is:

AASB 138 Intangibles prohibits the recognition of the following internally generated identifiable intangibles:

                                                   I            II            III           IV

Brands                                     No        No         No         Yes

Mastheads                              No        Yes        Yes        Yes

Publishing titles                      No         No        Yes        Yes

Customer lists                         No        Yes        No         Yes