Additional information a). On 1 January 2022, Madari Ltd advanced $50,000 to Concerto Ltd. The interest rate on the advance is 6% p.a payable monthly. b). Madari Ltd records dividend receivable as revenue when dividends are declared. c). The beginning inventories of Concerto Ltd at 1 July 2021 included goods that cost Concerto Ltd $1,000. Concerto Ltd purchased these inventories from Madari Ltd for $1,330. d). Intragroup sales totaled $5,000 for the period ended 30 June 2022. Sales from Madari Ltd to Concerto Lid, at cost plus 10% mark-up, amounted to $2,800. The ending inventories of Madari Ltd included goods that cost Madari Ltd $2,200. Madari Ltd purchased these inventories from Concerto Ltd at cost plus 10% mark-up. e). On 31 December 2021, Concerto Ltd sold an item of equipment to Madari Ltd for $15,000. This equipment originally cost Concerto Ltd $15,000 but at the time of the intragroup sale it had a carrying amount of $12,600. Madari Ltd depreciates the equipment at the rate of 10% p.a. on cost. Concerto depreciated the equipment at 8% p.a. on cost. f). The sales revenue account for Madari Ltd includes $3,000 earned from professional services provided to Concerto Lid in the year ended 30 June 2022. g). The income tax rate is 30%. Required 1. Prepare the acquisition analysis at 1 July 2020. 2. Prepare the business combination valuation entries and pre-acquisition entries at 30 June 2021. 3. Prepare the business combination valuation entries and pre-acquisition entries at 30 June 2022. 4. Prepare the consolidation worksheet journal entries to eliminate the effects of intragroup transactions at 30 June 2022. 5. Prepare the consolidation worksheet (in an Excel Spreadsheet) for the preparation of the consolidated statement of financial performance for the year ended 30 June 2022.Question Madari Ltd purchased 100% of the shares of Concerto Ltd on '1 July 2020 for $70,000. On the date of acquisition, the equity of the two entities was as follows: Madari Ltd[$} Concerto Ltd ($} General Reserve 25,000 5,500 Retained Earnings 4,500 3.300 Share Capital 60,000 38,000 At 1 July 2020. all of the identiable assets and liabilities of Concerto Ltd were recorded at fair value except for the following: Carrying Amount (33) Fair Value ($1 Inventory 3,000 4.500 Plant and Equipment 60,000 55,000 The plant and equipment had a further 5-year useful life. Anv valuation adjustments are made on consolidation. All of the inventories were sold by December 2020. The assets of Concerto Ltd included Goodwill with a value of $5,000. Financial information for both entities for the year ended 30 June 2022 is shown below. Madari Ltd Concerto Ltd Sales revenue 39,000 20,000 Dividend revenue 2,200 800 Total income 41,200 20,800 Cost of sales 30,000 15,000 Other expenses 5,400 2,500 Total expenses 35,400 17,500 Gross profit 5,800 3,300 Gain on sale of equipment 0 2,400 Profit before income tax 5,800 5,700 Income tax expense 1,500 1,745 Profit for the period 4,300 3,955 Retained earnings (1/7/21) 7,250 4,500 11,550 8,455 Interim dividend paid 2,000 1,000 Final dividend declared 4,000 1,200 Retained earnings (30/6/22) 5,500 6,255