9 Investments in Associates 6 Points Chalmers Ltd is a parent company that prepares consolidated financial statements. On 1 July 2019 Chalmers Ltd acquired 30% of the shares in Palmer Ltd at a cost of $210,000. The directors of Chalmers Ltd believe that they exert 'significant influence' over Palmer Ltd. At that time the equity in Palmer Ltd consisted of: Share capital $400,000; Retained profits $150,000 This equity at the acquisition date reflected the fair value of net assets in Palmer Ltd with the exception of some depreciable non-current assets with a fair value of $120,000 (before tax) greater than carrying amount. These depreciable assets are expected to have a further 5-year life. The results of Palmer Ltd for the year ended 30 June 2021 is as follows: 30 June 2020 S 30 June 2021 S Profit before tax Income tax 150,000 200,000 (20,000) (30,000) Profit after tax 130,000 170,000 Dividends paid (12,000) (15,000) Transfer to General Reserve (10,000) (20,000) Retained earnings 108,000 135,000 Additional information: At 30 June 2021, Chalmers Ltd had inventory costing $40,000 (2020: $50,000) on hand that had been purchased from Palmer Ltd. A profit before tax of $4,000 (2020: $5,000) had been recorded on the sale. In the year ended 30 June 2021, Palmer revalued land by $60,000 (before tax), which it included as part of revaluation reserves. . Note that as at the date of acquisition of Palmer Ltd, Chalmers Ltd was (and still is) a controlling entity that prepares consolidated financial statements. Corporate tax rate of 30% applies, where applicable. Required: Prepare the relevant consolidation journal entries on 30 June 2021, to account for Chalmers Ltd.'s investment in Palmer Ltd. Please upload your answer in PDF below