Claire Ltd owns all the share capital of Lauren Ltd. The following transactions relate to the period ended 30 June 2014. Assuming an income tax rate of 30%, provide adjustment entries to be included in the consolidation worksheet as at 30 June 2014.
- Lauren Ltd sold a depreciable asset (carrying amount of $20,800) to Claire Ltd on 1 January 2013 for $25,000. Both entities charge depreciation at a rate of 10% p.a. on cost in relation to these items. On 31 December 2013, Claire Ltd sold this asset to Anna Ltd for $20,000.