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Abra Ltd Sold an Item of Plant to Its Subsidiary

question 26

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Abra Ltd sold an item of plant to its subsidiary Cadabra Ltd on 1 January 2017 for $50 000.The asset had cost Abra Ltd $60 000 when acquired on 1 January 2015.At that time the useful life of the plant was assessed at 6 years.Rounded to the nearest dollar,the consolidation elimination entries at 30 June 2017 in relation to the sale of plant are which of the following?


Definitions:

Intentional Conduct

Describes actions undertaken with the aware intent to cause a particular result or outcome.

Legal Imperialism

American insistence that all disputes be resolved under American law.

Corporate Governance

The system of rules, practices, and processes through which a company is directed and controlled, focusing on balancing the interests of its various stakeholders.

American Law

The legal system of the United States, including its statutes, regulations, case law, and constitutional provisions.

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