Assessment Type: Short report on Consolidated financial statements and calculations $-$ Individual assessment.Purpose: This assessment is designed to allow students to research and analyse accounting standards and interpret how they apply to various corporate groups. It enables students to identify and solve problems relating to accounting for consolidated groups. This relates to learning outcomes a$,$ b and c$.$Value: $30\%$ Due Date: Week $10-$ Friday $8$:$00$ pm$.$Topic: Consolidation worksheet with adjustment entries for intragroup transactions: inventories, PPE, dividends, and debentures.Task Details:On $1$ July $2021,$ Ingrid Ltd acquired all the issued shares of Isabella Ltd$.$ The consideration for the acquisition was $$47350$ cash plus $100000$ shares in Ingrid Ltd$,$ which had a fair value of $$2$ per share.At the acquisition date, Isabella Ltd had inventories with a fair value $$1500$ greater than carrying amount.All these inventories were sold by Isabella Ltd prior to $30$ June $2022.$Isabella Ltd conducts a research and development division. It has expensed all past outlays. At the acquisition date, Ingrid Ltd assessed there was an in$-$process research and development asset with a fair value of $$12000.$ Ingrid decided that $$3000$ of this asset should be impaired for the year to $30$ June $2022.$The income tax rate is $30\%.$Intragroup transactions occurring in the annual period ended $30$ June $2022$ were as follows.$($a$)$ During the course of the year, Isabella Ltd sold inventories to Ingrid Ltd$.$ Total sales were $$60000,$ these being sold at cost plus $25\%.$ At $30$ June $2022,$ Ingrid Ltd still held inventories that it had bought from Isabella Ltd for $$15000.($b$)$ On $1$ January $2022,$ Ingrid Ltd acquired $900$ $$1008\%$ debentures previously issued by Isabella Ltd$.$These were acquired on the open market for $$85500.$ Interest on debentures is paid half$-$yearly. Interest due on $30$ June $2022$ has been paid by Isabella Ltd$.($c$)$ On $1$ April $2022,$ Ingrid Ltd sold an inventory item to Isabella Ltd for $$45000.$ This asset had cost Isabella Ltd $$36000$ to manufacture. The asset is used by Isabella Ltd as part of its plant and machinery.The depreciation rate used by Isabella Ltd for this type of asset is $20\%$ p$.$a$.$ on cost$.($d$)$ On $1$ March $2022,$ Isabella Ltd declared and paid a dividend of $$14700$ from its profits. On $30$ June $2022,$ Isabella Ltd declared a further dividend of $$10800.$The financial information provided by the two entities for $30$ June $2022$ was as follows:SalesDividend revenueIngrid Ltd$ $35210025500$Isabella Ltd$ $2720005000$Other income$/$gains$1000023000387600300000$Cost of sales$(184500)(180000)$Other expenses$(51900)(33000)(236400)(213000)$Profit before income tax$15120087000$Income tax expense$(48000)(30000)$Profit for the year$10320057000$Retained earnings $(1/7/21)360001800013920075000$Dividend paidDividend declared$(51000)(14700)(36000)(10800)(87000)(25500)$Retained earnings $(30/6/22)5220049500$Share capital$480000180000$General reserve$10200036000$Total equity$ $634200$$ $265500$Deferred tax liabilities$ $19500$$ $75008\%$ debentures$0120000$Dividend payable$2400010800$Provisions$1800035460$Payables$1650015000$Total liabilities$ $78000$$ $188760$Total equity and liabilities$ $712200$$ $454260$Plant and machinery$160000165000$Accumulated depreciation$(60000)(39000)$Land$143450225000$Debentures in Isabella Ltd$85500$Shares in Isabella Ltd$247350$Cash$11505260$Receivables$3175015500$Inventories$10300082500$Total assets$ $712200$$ $454260$Required$1.$ Calculate acquisition analysis as of $1$ July $20212.$ Prepare the consolidation journal entries for $30$ June $20223.$ Complete the consolidated worksheet for $30$ June $20224.$ Prepare the consolidated financial statements at $30$ June $20225.$ Write a report to explain the consolidation process as per AASB$10$ for wholly owned entities and provide suitable explanations for intragroup adjustments $($b$)$ and $($c$)$ in additional information above.