Genny Ltd sold an item of plant to its subsidiary, Paul Ltd, on 1 January...
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Accounting
Genny Ltd sold an item of plant to its subsidiary, Paul Ltd, on 1 January 2019 for $50 000. The asset had cost Genny Ltd $60 000 and had an useful life of 6 years when acquired on 1 January 2017 from an external party. The adjustment necessary on consolidation in relation to the transfer of plant as at 30 June 2019 will result in:
Select one:
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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