prepare the consolidation adjusting entry required by Black Ltd for year ended 30 June 2021, included narrations.

Background information relevant to questions 3 to 4. Black Ltd paid $20,000 to acquire 100% of the issued shares of White Ltd at 1 July 2018. On 1 July 2018, Black Ltd sold an item of equipment to White Lid for $4,500. This asset had cost Black Ltd $5,000 on 1 July 2015 and was being depreciated straight-line over 10 years. Accumulated depreciation at 30 June 2018 was $1,500. The asset is depreciated by White Ltd using a 50% reducing balance method on cost. The following is an extract of Black Ltd's adjusting consolidation journal entries at 30 June 2020: Account name Dr ($) Cr ($) Opening retained earnings 1,000 Equipment(a) 500 Accum.dep'n (b) 1,500 Deferred tax asset 300 Opening retained earnings 300 Accum.dep'n 2,375 Opening retained earnings(c) 1,750 Dep'n exp. (d) 625 Opening retained earnings 525 Income tax expense 187.5 Deferred tax liability 712.5