Find the following elimination of intragroup transactions with excel Other downstream transactions: 13. On 1 January 2019,
Question:
Find the following elimination of intragroup transactions with excel
Other downstream transactions:
13. On 1 January 2019, Attenborough Berhad sold a software equipment to Thunberg Sdn Bhd for $150 000. The software equipment had originally cost Attenborough Berhad $250 000 and the accumulated depreciation at the date of the disposal was $40 000. The asset was assessed as having a remaining useful life of six years.
14. During the current financial year, Attenborough Berhad charged its subsidiary rental fee of $57 600 per year. Thunberg Sdn Bhd still owed its holding company RM12 960 of the outstanding amounts at year end. The amount was included under the 'Other receivables' and 'Trade and other payables' accounts, respectively.
Additional information (contd,):
Other upstream transactions:
15. On 1 April 2018, Attenborough Berhad provided a loan amounted to $700 000 to Thunberg Sdn Bhd. This loan was payable over 6 years with an interest rate of 8.5% per annum. Interest on the loan is paid yearly on the 31 December. Both companies accrue interest amounts every month. Interest income account was classified as 'other income' in Attenborough Berhad.'s books and interest expense account were classified as 'finance costs' in Thunberg Sdn Bhd.'s books. Thunberg Sdn Bhd has yet to make any repayments on the loan.
16. On 1 May 2019, Thunberg Sdn Bhd sold its internally generated internet of things software equipment to Attenborough Berhad for $120 000. At the time of its disposal, it was estimated to have a definite useful life of 5 years using straight-line amortisation basis.
17. An interim dividend of $0.20 per share of 490 000 ordinary shares was paid by Thunberg Sdn Bhd during the current financial year.
18. The final dividend of $0.13 each share for the 490 000 shares was declared by Thunberg Sdn Bhd on 28 September 2021 from retained earnings and was paid subsequently on 15 October 2021. The constitution of the subsidiary allows directors to declare final dividend at any time and this is not subject to any further approval, authorisation, or discretion.
19. Historically, the subsidiary raised further financing from external parties through the issuance of preference shares. Preference shares dividends of $15 000 was paid by the subsidiary during the financial year.
Expert Answer:
EXCEL WORKSHEET IS PREPARED BELOW NOTES 1The elimination item for Transaction 13 the sale of softwar... View the full answer
