(a) Prepare the pre-acquisition entries at 1 July 2019. (b) Prepare the pre-acquisition entries at 30 June 2020. (LO4 and LO5) Question 10.6 Business combination valuation entries, pre-acquisition entries On 1 July 2019, Mutt Ltd acquired all the issued shares of Jeff Ltd for $174 800. At this date the equity of Jeff Ltd consisted of share capital of $80 000 and retained earnings of $68 800. All the identifiable assets and liabilities of Jeff Ltd were recorded at amounts equal to fair value except for: Carrying amount Fair value Patent $60 000 $72 000 Plant (cost $80 000) 40 000 48 000 Inventories 21 600 28 000 The patent was considered to have an indefinite life. It was calculated that the plant had a further life of 10 years, and was depreciated on a straight-line basis. All the inventory was sold by 30 June 2020. In June 2020, Jeff Ltd conducted an impairment test on the patent, as it was considered to have an indefinite life, and the goodwill. As a result, the goodwill was considered to be impaired by $1200. In May 2020, Jeff Ltd transferred $20 000 from the retained earnings on hand at 1 July 2019 to a general reserve. The tax rate is 30%. Required Prepare the consolidation worksheet adjustments entries at 1 July 2019 and 30 June 2020. (LOS)