Additional information - The identifiable net assets of Charles Itd were recorded at fair value yatthedateof acquisition. - In applying the impairment test for goodwill in the current year, the directors have determined that a write-down of $10000 is required for consolidation purposes. The cumulative goodwill impaiment write-downs for prior years amounted to $15000. - An item of plant and equipment owned by Charies (cost $30 000 and accumulated depreciation of $15000 ) was sold to Diana Ltd for $13.000 on Tuly 2020. Charles deprecialed the asset at 10% per anmum siraight-line on original cost (assuming a 10-year economic life). Dian, assuming a turther economic life for the plant and equipment of Question On 1 July 2019. Diana I td acquired 100\% of the issuod shares of Charles Ltd for $320000.A the date of acquisition, the sharehorders' equity or Charles Lid consisted of At 30 June 2023 , the accounts of the two cormpanies are presented below five years from its date of acquisition, has applied a depreciation rate of 20% straight-line from the date of transfer of the asset. - The opening inventory of Charles Lid includes unrealised profit of $2000 on inventory transferred from Diana Ltd during the prior financial year. All of this inventory was sold by Charles Lid to parties external to the group during the year ended 30 June 2023. - During the current financial year, Charles Ltd purchased inventory from Diana Lid for $30 000. The inventory had previously cost Diana Lid \$24 000. One-third of this inventory was sold to outsiders by Charles during the year. - Charles Lid borrowed \$40000 from Diana Lid during the financial year. Charles paid \$2 000 interest on this loan during the year. In addition, a further $1000 in interest has been recognised as an accrued expense in Charles Ltd's accounts and as interest receivable in Diana Lid's accounts. Interest expense is included in Charles Lid's accounts under the "financial expenses' heading. - On 15 July 2022, Charles Ltd paid a final dividend of $8000 to Diana Lid from profits for the prior financial year. - Charles also paid an interim dividend of $6000 to Diana Lid on 1 February 2023. In addition, Charles Ltd has provided for a final dividend amounting to $10000. Diana Ltd has not recognised this dividend as a receivable prior to receipt. - The tax rate is 30%. Required 1. Prepare an acquisition analysis. 2. Prepare the consolidation journal entries necessary to prepare consolidated accounts for the year ending 30 June 2023 for the group comprising Diana Ltd and Charles Ltd. 3. Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2023. 4. Why is it important to identify intragroup transactions as current or previous period transactions? 5. In what circumstances is a tax-effect adjustment required when making an adjustment for an intragroup transaction? Provide two examples of intragroup transactions that would require a tax-effect adjustment and one example of an intragroup transaction that would not require a tax-effect adjustment