Additional information:

a)On 1 July 2014, A Ltd acquired 75% of the contributed equity of Z Ltd. At that date the equity of Z Ltd comprised:

Contributed equity $225 000 Retained earnings $55 140 Revaluation reserve $43 500

b)At the time acquisition, all assets were considered to be fairly valued.

c)During the current fiscal year, Z Ltd made sales to A Ltd amounting to $126 750; Z Ltd had always sold goods to A Ltd at a mark-up of 25% on cost.

d)Inventory at 30 June 2018 was as follows: A Ltd $63 600

Z Ltd $41 700

e)Of the inventory A Ltd had on hand at 30 June 2017, $18 900 was purchased from Z Ltd.

f)Of the inventory A Ltd had on hand at 30 June 2018, $23 100 was purchased from Z Ltd.

g)Z Ltd's administrative expenses include $32 250 paid to A Ltd for providing management and administrative service for the current fiscal year.

h)On 30 June 2018, the directors decided that goodwill arising on A Ltd's acquisition of Z Ltd had been impaired by 40%.

i)On 30 June 2018, a final dividend amounting to $42 000 was provided by A Ltd, while $30 000 was provided by Z Ltd, and the decision to pay the dividend communicated to shareholders on that date. A Ltd has recognised its share of the dividend receivable from Z Ltd in its financial statements on 30 June 2018.

j)Tax is charged at a rate of 40%.

Required:

(a)Complete the acquisition analysis on 1 July 2014 for A Ltd's investment in Z Ltd as required by AASB3 and AASB10 and determine the amount of goodwill or gain on bargain purchase following the partial/proportional goodwill method.

(b)Prepare the acquisition journal entries on 1 July 2014.

(c)Prepare all consolidated journal entries including non-controlling interest and their posting to consolidated worksheet for the year ended 30 June 2018 for consolidation purpose of A Ltd and Z Ltd.

The financial statements of A Lid and Z Ltd at 30 June 2018 are set as follows: Statement of Comprehensive Income A Lid Z Ltd $ Income: Opening inventory 44 550 64 800 Purchases 1 076 907 756 428 Closing inventory 63 600 41 700 Cost of sales 1 057 857 779 528 Sales revenue 1 445 100 1 113 300 Gross profit 387 243 333 772 Other Income 66 000 Dividend income 33 750 Administration fee 32 250 519 243 333 772 Expenses: 312 543 212 772 Admin and other expenses 185 319 142 567 Depreciation 29 040 23 460 Other expenses 98 184 56 745 Profit before tax 206 700 111 000 Tax exp. 46 431 36 630 Profit/surplus after tax 160 269 74 370 Dividends proposed & paid 60 000 45 000 Retained earnings for the year 100 269 29 370 Statement of Financial Position Equity and liabilities:Contributed capital 405 000 225 000 Revaluation surplus 75 000 Retained earnings 166 755 154 170 Long-term loan 139 545 Accounts payable 38 505 44 319 Taxation payable 46 431 36 630 Dividends payable 42 000 30 000 698 691 704 664 Assets: Non-current assets 232 016 588 902 Investment in Z Limited 257 730 Inventory 63 600 41 700 Accounts receivable 50 175 68 413 Dividends receivable 22 500 Cash 72 670 5 649 698 691 704 664