Undervalued and unrecorded assets, unrecorded liabilities  LO3, 4 On 1 July 2019, Ava Ltd acquired all the issued shares of Isabel Ltd for a cash consideration of $1 000 000. At that date, the financial statements of Isabel Ltd showed the following information. Share capital $650 000 General reserve 20 000 Retained earnings 250 000 All the assets and liabilities of Isabel Ltd were recorded at amounts equal to their fair values at the acquisition date, except some equipment recorded at $50 000 below its fair value with a related accumulated depreciation of $80 000. Also, Ava Ltd identified at acquisition date a contingent liability related to a lawsuit where Isabel Ltd was sued by a former supplier and attached a fair value of $40 000 to that liability. Required 1. Prepare the acquisition analysis at 1 July 2019. 2. Prepare the consolidation worksheet entries for Ava Ltd’s group at 1 July 2019, assuming that Isabel Ltd has not revalued the equipment in its own accounts. 3. Prepare the consolidation worksheet entries for Ava Ltd’s group at 1 July 2019, assuming that Isabel Ltd has revalued the equipment in its own accounts.