Question: On 1 6 May 2 0 2 0 , A Ltd sold equipment to its subsidiary B Ltd for $ 9 6 0 0 0

On 16 May 2020, A Ltd sold equipment to its subsidiary B Ltd for $96000, this asset having a carrying
amount at time of sale of $81000. The equipment was regarded by A Ltd as a depreciable non-current asset,
being depreciated at 10% p.a. on cost, whereas B Ltd records the machinery as inventory. The asset was sold
by B Ltd before 30 June 2020. What is the consolidation adjustment entry in relation to the sale of this asset
during the year ended 30 June 2020?
Answer:
(Needs to be a 1 journal entry)
On 16 May 2020, A Ltd sold equipment to its subsidiary

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