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The following financial statements of Tom Ltd and its subsidiary Jerry Ltd have been extracted from their financial records at 30 June 2021.

	Tom Ltd ($000)	Jerry Ltd ($000)
Reconciliation of operating profit and closing retained earnings
Sales revenue	671.4	540
Cost of goods sold	(464)	(238)
Gross profit	207.4	302
Dividends received from Jerry Ltd	93	-
Management fee revenue	26.5
Gain on sale of plant	40	35
Expenses
Administrative expenses	(30.8)	(38.7)
Depreciation	(29.5)	(56.8)
Management fee expense	-	(26.5)
Other expenses	(101.1)	(72)
Profit before tax	205.5	143
Tax expense	(61.5)	(42.2)
Profit for the year	144	100.8
Retained earnings 1 July 2020	319.4	239.2
	463.4	340
Dividends paid	(137.4)	(93)
Retained earnings 30 June 2021	326	247
	Tom Ltd ($000)	Jerry Ltd ($000)
Statement of financial position
Shareholders equity
Retained earnings	326	247
Share capital	350	200
Current liabilities
Accounts payable	54.7	46.3
Tax payable	41.3	25
Non-current liabilities
Loans	173.5	116
	945.5	634.3
Current assets
Accounts receivable	59.4	62.3
Inventory	92	29
Non-current assets
Land and Buildings	224	326
Plant at cost	299.85	355.8
Accumulated depreciation	(85.75)	(138.8)
Investment in Jerry Ltd	356	-
	945.5	634.3

Other information

a) Tom Ltd acquired its 100 per cent interest in Jerry Ltd on 1 July 2019, that is, five years earlier. At that date the capital and reserves of Jerry Ltd were:

Share capital $200,000

Retained earnings 180,000

$380,000

At the date of acquisition all assets were considered to be fairly valued.

b) During the year Tom Ltd made total sales to Jerry Ltd of $60,000.

c) The closing inventory in Tom Ltd includes inventory acquired from Jerry Ltd at a cost of $33,000. This cost Jerry Ltd $28,000 to produce.

d) The closing inventory of Jerry Ltd includes inventory acquired from Tom Ltd at a cost of $12,000. This cost Tom Ltd $10,000 to produce.

e) The opening inventory of Tom Ltd included inventory acquired from Jerry Ltd for $40,000 that cost Jerry Ltd $30,000 to produce.

f) On 1 July 2020 Jerry Ltd sold an item of plant to Tom Ltd for $116,000 when its carrying value in Jerry Ltds accounts was $81,000 (cost $135,000, accumulated depreciation $54,000). This plant is assessed as having a remaining useful life of six years. The group has a policy of measuring its property, plant and equipment using the cost model. The group uses the straight-line method of depreciation.

g) Jerry Ltd paid $26,500 in management fees to Tom Ltd.

h) Dividends were paid by Jerry Ltd during the year.

i) The tax rate is 30 per cent.

Required:

a) Prepare an acquisition analysis.

b) Prepare the consolidation journal entries for Tom Ltd and its consolidated entity as at 30 June (ignore narrations).