A Ltd Sold an Item of Plant to Its Subsidiary

question 39

Multiple Choice

A Ltd sold an item of plant to its subsidiary, B Ltd, on 1 January 2017 for $25 000. The asset had cost A Ltd $30 000 and had an useful life of 6 years when acquired on 1 January 2015 from an external party. The adjustment necessary on consolidation in relation to the transfer of plant as at 30 June 2017 will result in:

• A) an increase in current year profit.
• B) a decrease in current year profit.
• C) an increase in current year profit and non-current assets.
• D) a decrease in current year profit and non-current assets.

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Definitions:

Assertive

Characterized by confidence and self-assurance in expressing one's opinions and needs directly and respectfully, without aggression.

Uncooperative Behaviors

involve actions by individuals that hinder team or organizational goals, often manifesting as resistance to tasks, processes, or authority.

Win-lose Approach

A conflict resolution strategy where one party's gain is perceived to be at the expense of another's loss.

Emergency

A sudden, unexpected situation requiring immediate action, often to prevent a disaster or harm.