Undervalued assets, unrecorded liabilities, pre‐acquisition reserves transfers    LO5 On 1 July 2018, Zack Ltd acquired all the issued shares (ex div.) of William Ltd for $227 500. At this date the equity of William Ltd consisted of the following. Share capital (100 000 partly paid shares) $150 000 General reserve 34 000 Retained earnings 20 000 At acquisition date, William Ltd reported a dividend payable of $8000. All the identifiable assets and liabilities of William Ltd were recorded at amounts equal to their fair values except for the following. Carrying amount Fair value Plant (cost $200 000) $175 000 $190 000 Land 150 000 155 000 Inventories 32 000 40 000 The plant was considered to have a further 3‐year useful life. The land was sold in January 2019 for $170 000. Of the above inventories, 90% was sold by 30 June 2019 and the remainder was sold by 30 June 2020. William Ltd had recorded goodwill of $2000 (net of accumulated impairment losses of $12 000). William Ltd was involved in a court case that could potentially result in the company paying damages to customers. Zack Ltd calculated the fair value of this liability to be $8000, but William Ltd had not recorded any liability. The following events occurred in the year ending 30 June 2019. • On 12 August 2018, William Ltd paid the dividend that existed at 1 July 2018. • On 1 December 2018, William Ltd transferred $17 000 from the general reserve existing at 1 July 2018 to retained earnings. • On 1 January 2019, William Ltd made a call of 10c per share on its issued shares. All call money was received by 31 January 2019. • On 29 June 2019, Zack Ltd reassessed the liability of William Ltd in relation to the court case as the chances of winning the case had improved. The fair value was now considered to be $2000. Required Prepare the consolidation worksheet entries for Zack Ltd’s group at 30 June 2019.