A)
Retained Earnings (1/8/2019) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Dr 3150
Income tax expense                                                               Dr 1350
Cost of sales                                                                           Cr 4500
B)
Retained Earnings (1/8/2019) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Dr 21000
Income tax expense                                                               Dr 9000
Cost of sales                                                                           Cr 30000
Accumulated Depreciation                                                    Dr 4500
Depreciation Expense                                                            Cr 3000
Retained Earnings (1/8/2019)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Cr 1500
(10% x $30,000 p.a for 1.5 years)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Income tax expense                                                               Dr 900
Retained Earnings (1/8/2019)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Dr 450
Deferred tax asset                                                                  Cr 1350
The accounting for pre-acquisition and post-acquisition payouts is same. All of them are treated as post-acquisition dividends (Beams, 2018). The adjustment is made to the parent`s dividend revenue and the subsidiary`s dividends paid. The characterization of all payouts as post-acquisition dividends is difficult to defend theoretically, and the standard-setters took this decision based on practical considerations. The moment of realization cannot be immediately defined by comparison to the participation of an external entity since the asset is never on with a member of the group, rather staying inside the community and also being consumed by usage inside the collective. The value of the asset is thus indirectly defined by its use within the group, that is, in ratio to the consumption of the asset`s advantages inside the group (Santis, Grossi & Bisogno, 2018). The financial gain on sale within the group is then calculated in the same proportion as the asset`s depreciation. For example, if the transferable asset is depreciated on a regular basis over a ten year period, at a rate of 10% per year, the profit on sale is realized at 10% per year (Hadi, 2015).
Business Economics Assignment 3: Case Study Analysis on Price Controls in Pharma and Monopoly Power in Airline Industry
Read MoreCSC408 MIS Case Study Assignment Report: Analysis of Issues and Solutions in Information Systems
Read MoreScientific Research Review Assignment 4: Advancements and Ethical Practices in Your Study Area Literature Synthesis
Read MoreOrganizational Development Assignment: Tech Solutions Inc. Case Study on Engagement, Retention, and Inclusive Culture
Read MoreHPGD3103 Instructional Technology Assignment: ASSURE Model-Based Lesson Design in Google Classroom
Read MoreAI Deepfake Cybersecurity Assignment: Evaluating Security Risks and Detection Techniques for Safe Digital Environments
Read MoreMGT4216E Strategic Innovation Management Assignment: Exploring Innovation Capabilities, Strategy Stages, and Leadership for Business Transformation
Read MoreEmployee Engagement & HR Strategy Assignment: Case Analysis of Tech Solutions Inc. on Turnover, D&I, Performance, and Work-Life Balance
Read MoreHigher Education Reform Assignment: Curriculum Development Strategies for a Future-Ready Malaysia
Read MoreCross-Cultural Management Assignment Report: Importance, Challenges & Strategies in Global Teams
Read More