6-4 ex Lid purchased all the shares in Luthor Lid on 1 July 2010 for $350,000. 1. At 1 July 2010, Luthor's net assets were considered to be fairly valued, except for plant (with a cost of $245 000 and accumulated depreciation $44 000) which had a fair value of $225 000 and a remaining useful life of 10 years. The Trial Balance of Luthor Lid at 1 July 2010 was: Bank Debit Credit Inventories 13,000 Plant (net) 98,000 Land & Buildings (net) 201,000 100,000 Accounts Payable Share capital 72,000 Retained Earnings $260,000 80,000 412,000 412,000 2. Intercompany sales for the year ended 30 June 2015 were: Lex sold to Luthor $90 000, originally cost Lex $60 000 Luthor sold to Lex $70 000, originally cost Luthor $50 000 3. At 30 June 2015, Lex has sold all inventory outside the group which it purchased from Luthor. However, Luthor still has 20% of the inventory it purchased from Lex on hand. 4. Inventories on hand from intercompany sales at the start of the year, 1.7.14, were: Lex purchased from Luthor $ 9 000, originally cost Luthor $7 500 Luthor purchased from Lex $10,500, originally cost Lex $8 750 5. On 31 December 2014 Luthor Lid paid a dividend of $10,000. The company declared, but had not yet paid, a further dividend of $20,000 on 30 June 2015 which was recorded in the books of Lex. 6. On 31 March 2015 Lex Lid paid a dividend of $15,000. The company declared, but had not yet paid, a further dividend of $4,000 on 30 June 2015. 7. Lex Lid rents premises owned by Luthor Lid. The annual rental paid is $30,000 cash. Additional information: (a) Depreciation method for group assets is straight line on asset cost over remaining useful life, no residual value. (b) The company tax rate is 30% Required: Prepare the appropriate consolidation adjustment and elimination journal entries for the year ended 30 June 2015 in the space available on pages 6-7 (show workings separately if you wish). Number each journal to match the information given above which supports the entry (i.e. 1(a), 1(b), 1(c) etc...., 2, 3(a), 3(b) etc