Question: gtgton 1 july 2016 liala ltd sold an item of...
>>On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying value in Liala Ltd book was $200,000 (costs $300,000, accumulated depreciation $100,000). This plant has a remaining useful life of five (5) years from the date of sale. The group measures its property plants and equipment using a cost model. The tax rate is 30 percent.
Prepare the necessary journal entries on 30 June 2017 to eliminate the intra-group transfer of equipment.