Aye Ltd acquired 90% interest in Bee Ltd on 1 January 20x1, for which the purchase consideration was structured as follows:

Cash of $800,000.

A parcel of freehold land with carrying amount of $300,000 in the books of Aye Ltd but had a fair value of $400,000 as at 1 January 20x1.

A contingent payment of $100,000 payable in two years from the acquisition-date if Bee Ltd meets specific profit targets. On 1 January 20x1, based on the probability of the profit target being met as at that date, the probability-weighted discounted fair value of the contingent payment was $89,120.

A deferred payment of $800,000 payable at the end of five years. The present value of this deferred consideration as at 1 January 20x1 was $626,821.

On 1 January 20x1, the total equity of Bee Ltd was represented by 1,000,000 ordinary shares at $1,000,000 and retained earnings of $600,880 and the fair values of all its assets and liabilities were the same as their carrying amounts, except for a machine which was estimated to have a fair value of $50,000 in excess of its carrying amount.

The accounting policy of Aye Ltd for its consolidated financial statements is to state non-controlling interest at acquisition-date at its fair value. In conjunction with the acquisition of Bee Ltd above, Aye Ltd had undertaken a valuation exercise and established that the fair value of the non-controlling interest at acquisition-date was $260,000.

Ignore deferred tax effects.

Prepare the following accounting entries for the acquisition of Bee Ltd:

(i) Journal entries in the books of Aye Ltd.

(ii) Consolidation journal entries for the preparation of consolidated financial statements of Aye Ltd as at acquisition date