On January 1, 20X3, Sub Ltd., 80% owned by Par Ltd., sold a building to Par Ltd.

Question:

On January 1, 20X3, Sub Ltd., 80% owned by Par Ltd., sold a building to Par Ltd. for $ 1,800,000. The building cost Sub $ 800,000 and was 70% depreciated (at 5% per year). Par will depreciate the building over the six remaining years, straight- line.

Required
Give the consolidation eliminations required in relation to this transaction for the years ended:
a) 20X3
b) 20X5