During the period 1 July 2017 to 30 June 2019, the following intragroup transactions have occurred between London Ltd and Whale Ltd:
(T1) On 1 October 2018, London Ltd provided a $500,000 loan to Whale Ltd. The interest rate on this loan is 10% p.a., and interest is paid each year on 30 March. At 30 June 2019, no principal repayments have been made on the loan.
(T2) In April 2018, London Ltd sold inventory to Whale Ltd for $1,300. The inventory had previously cost London Ltd $800. By 30 June 2018, 80% of this inventory had been sold to Scarf Ltd for $1,500. The remainder of the inventory was sold to Fluffy Jacket Ltd in August 2018 for $1,600.
(T3) On 3 June 2019, Whale Ltd sold inventory to London Ltd for $42,000. The transfer price included a mark-up of 20% on cost. At 30 June 2019, one-half of this inventory was still on hand.
(T4) On 1 March 2019, Whale Ltd sold equipment to London Ltd for $55 000, this asset having a carrying amount at the time
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