On 1 July 2022 David Ltd acquired a 100 per cent interest in Sandy Ltd .On 1
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Question:
On 1 July 2022 David Ltd acquired a 100 per cent interest in Sandy Ltd .On 1 July 2022 David Ltd sells an item of plant to Sandy Ltd for $880 000.
This plant cost David Ltd $1 million, is four years old and has accumulated depreciation of $400 000 at the date of the sale.
The remaining useful life of the plant is assessed as six years.
The tax rate is 30 per cent.
Required:
Calculate Gain or Loss on sales of the plant and prepare the journal entry.
Related Book For
International Financial Reporting a practical guide
ISBN: 9781292439426
8th Edition
Authors: Alan Melville
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