Undervalued and unrecorded assets, unrecorded liabilities  LO3, 4 In the year ended 30 June 2015, Stan Ltd acquired 40% of the issued shares of Lee Ltd for $72 000. This acquisition did not give Stan Ltd control of Lee Ltd, because the ownership of Lee Ltd was held by a small number of shareholders (Lee Ltd was developed as a family business in 2004). On 1 July 2019, Stan Ltd approached these family members following a death in the family and persuaded them to sell the remainder of the shares in Lee Ltd to Stan Ltd for $137 700 on a cum div. basis. Information about the two companies at 1 July 2019 included the following. • Stan Ltd recorded its original investment in Lee Ltd at fair value, with changes in fair value being recognised in profit or loss. At 1 July 2019, the investment was recorded at $91 800. • The equity of Lee Ltd at 1 July 2019 consisted of $144000 share capital and $36 000 retained earnings. • Included in the assets and liabilities recorded by Lee Ltd at 1 July 2019 were goodwill of $5400 (net of accumulated impairment losses of $3600) and dividend payable of $4500. • On the acquisition date all the identifiable assets and liabilities of Lee Ltd were recorded at carrying amounts equal to their fair values except for inventories for which the fair value of $39 600 was $3600 greater than its carrying amount, and equipment for which the fair value of $94 500 was greater than the carrying amount, this being cost of $108 000 less accumulated depreciation of $18 000. • Stan Ltd discovered that Lee Ltd had two assets that had not been recorded by Lee Ltd. These were internally generated patents that had a fair value of $45 000 and in‐process research and development for which Lee Ltd had expensed $90 000, but Stan Ltd considered that an asset was created with a fair value of $18 000. • In the notes to the financial statements at 30 June 2019, Lee Ltd had reported the existence of a contingent liability relating to guarantees for loans. Stan Ltd determined that this liability had a fair value of $9000 at 1 July 2019. The tax rate is 30%. Required 1. Prepare the acquisition analysis at 1 July 2019. 2. Prepare the consolidation worksheet entries for Stan Ltd’s group at 1 July 2019.