A parent company. Ragae Limited aquirrd on 1 July 2015 a 255% voting right interest in Shark Limited for $285,000 cash. At the date of aquisition, the accounts of Shark Ltd include the following: Issued Capital- 1.500,000 Retained Earnings- 300,000 General Reserve 100,000 Total equity- 1,900,000 All the identifiable assets and liabilities of Shark Ltd were recorded at fair value except for: Equipment: Carrying Amount: 65,000 Fair Value- 215,000 The remaining useful life of equipmrmt is 8 years. Additional information: a) At 1 June, Reggae Ltd sold inventory to Shark for $277,000. This inventory originally cost Raggae Ltd 202,000. By June 2016, Shark Ltd has sold 40% of the inventory to third parties. The renaining invebtory is sold during the year ended 30 June 2017. b) On 1 January 2017, Shark Ltd sold equipment to Raggae Lyd for 780,000. The equipment originally cost Shark Ltd $90,000. The carrying amount of the date of sale was 750,000 and remaining useful life is 4 years. c) Shark ltd transferred 20,000 from retained earnings to general reservr in the financisl year 30 June 2017. d) Tax rate is 30%. The financial statement of Shark Ltd includes: Profit before income tax- 300,000 Income tax expense- (100,000) Profit for year 200,000 Opening Retained Earnings 400,000 Dividends Paid (100,000) Closing Retained Earnings 500,000 Required: Prepare equity journal entries for Raggae Ltd to apply the equity method to account for its investment in Shark Ltd for year ended 30 June 2017