Undervalued assets, partial goodwill method  LO3, 4, 5, 6 On 1 July 2016, Eli Ltd acquired 75% of the issued shares of Flynn Ltd for $125 750 when the equity of Flynn Ltd consisted of: Share capital $80 000 General reserve 20 000 Retained earnings 40 000 At this date, all identifiable assets and liabilities of Flynn Ltd were recorded at fair value except for the following. Carrying amount Fair value Inventories $20 000 $24 000 Plant (cost $50 000) 35 000 41 000 Land 50 000 70 000 All the inventories were sold by 30 June 2017. The plant has a further 3‐year life beyond 1 July 2016, with benefits to be received evenly over this period. The land was sold on 1 March 2019 for $75 000. Adjustments for the differences between carrying amounts and fair values are to be made in the consolidation worksheet except for land which is to be measured in Flynn Ltd’s accounts at fair value. Eli Ltd uses the partial goodwill method. The tax rate is 30%. During the 4 years since acquisition, Flynn Ltd has recorded the following annual results. Year ended Profit (loss) Total comprehensive income 30 June 2017 $10 000 $12 000 30 June 2018 23 000 28 000 30 June 2019 (6 000) 1 000 30 June 2020 22 000 22 000 The other comprehensive income item relates to gains/losses on revaluation of land. There have been no transfers to or from the general reserve or any dividends paid or declared by Flynn Ltd since the acquisition date. Required 1. Prepare the consolidation worksheet entries as at 1 July 2016. 2. Prepare the consolidation worksheet entries for the year ended 30 June 2017. 3. Prepare the consolidation worksheet entries for the year ended 30 June 2018. 4. Prepare the consolidation worksheet entries for the year ended 30 June 2019. 5. Prepare the consolidation worksheet entries for the year ended 30 June 2020.