1) Largey acquired 100% of Smalley on 1 April 2011 for $650,000. At the time of acquisition the equity of Smalley was: Contributed equity Retained earnings Revaluation reserve $300,000 $150,000 $150,000 Smalley paid a dividend of $20,000 during the financial year. Largey also borrowed $45,000 from Smalley during the current financial year. There were no other transactions between Smalley and Largey and all assets were recorded at fair value at the date of acquisition. la) Record any consolidation adjustments required and fill-in the consolidation worksheet below for the year ending 31 March 2012. Consolidated Elimination and adjustments Dr Cr $'000 $'000 Largey $'000 Smalley $'000 statement $'000 150 (50) Income statement Profit before tax Profit after tax Retained earn. 31 March 2011 Dividends paid 300 (100) 200 400 0 100 150 (20) Balance sheet Equity Retained earn. 31 March 2012 Contributed equity Revaluation reserve 600 1.200 230 300 200 300 Current liabilities Accounts payable 100 100 Non-current liabilities Loans 600 2,800 270 1,100 Current assets Cash Accounts receivable 100 350 100 155 700 1,000 Non-current assets Land Plant Loan receivable Investment in Smalley Ltd Goodwill 200 600 45 650 2,800 1,100