Question: on 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 form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 30 percent.
Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of equipment.