1. Undervalued and unrecorded assets, unrecorded liabilities In 20X2, LEE Ltd acquired 40% of the issued shares of Stan Ltd for $72 000. This acquisition did not give LEE Ltd control of Stan Lid, because the ownership of Stan Lid was held by a small number of shareholders (Stan Ltd was developed as a family business 10 years ago). On 1 July 20X6, LEE Ltd approached these family members following a death in the family and persuaded them to sell the remainder of the shares in Stan Ltd to LEE Ltd for $137 700 on a cum div. basis. Information about the two companies at 1 July 20X6 included: LEE Ltd recorded its original investment in Stan Ltd at fair value, with changes in fair value being recognised in profit or loss. At 1 July 20X6, the fair value of the $91 800 investment, excluding dividends, was The equity of Stan Ltd at 1 July 20X6 share capital $144 000 consisted of retained earnings $36 000 Included in the assets and liabilities goodwill $5400 (net of accumulated recorded by Stan Ltd at 1 July 20X6 were impairment losses of $3600) dividend payable $4500 On the acquisition date all the identifiable inventories for which the fair value of $39 600 assets and liabilities of Stan Ltd were was $3600 greater than its carrying amount recorded at carrying amounts equal to equipment for which the fair value of $94 500 their fair values except for was greater than the carrying amount, this being cost of $108 000 less accumulated depreciation of $18 000 LEE Ltd discovered that Stan Ltd had internally generated patents that had a fair two assets and a contingent liability value of $45 000 relating to guarantees for loans that had in-process R&D for which Stan Ltd had not been recorded by Stan Ltd. These expensed $80 000, but LEE Ltd considered were that an asset was created with a fair value of $20 000. the liability had a fair value of $9000 The tax rate is 30%Required a. Prepare the acquisition analysis at 1 J uly 20X6. b. Prepare the consolidation journal entries for LEE Ltd 's group at 1 July 20X6