A parent entity group sold a depreciable non-current asset to a subsidiary entity for $5 300. The

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Question:

A parent entity group sold a depreciable non-current asset to a subsidiary entity for $5 300. The asset originally cost $7 000 when acquired from an external party and at the date of the intragroup sale the accumulated depreciation was $2 200. The amount of the unrealised gain on the intragroup sale to be eliminated is:

a. $500.

b. $2 200.

c. $4 800.

d. $5 300.