Berry Lid acquired 70% of the shares of James Ltd on 1st July 2016 for $540,000. The James Ltd equity consisted of the following items at acquisition date Share Capital $500,000 General Reserve 80,000 Retained Earnings 50,000 Asset revalution reserve 20,000 All identifiable assets and liabilities of James Ltd are recorded at fair value at this date except for inventory for which the fair value was $10,000 greater than carrying amount and plant which had a carrying amount of $150,000 (Accumulated depreciation net of $40,000) and a fair value was $170,000. The plant has a further 5 years life.The Financial information for both companies at 30 June 2020 is as follows: Berry Ltd James Ltd Sales Revenue $720,000 $530,000 Other revenue 240,000 120,000 Cost of Sales (610,000) (410,000) Other expenses (230,000) (160,000) Profit before tax $120,000 $80,000 Tax expense (40,000) (25,000) Profit for the period $80,000 $55,000 R/E at 1/07/20 200,000 112,000 Dividend Paid (20,000) (10,000) Dividend declared (25,000) (15,000) R/E at 30/06/21 $235,000 $142,000 Share capital 600,000 500,000 Asset revaluation reserve 20,000 60,000 General reserve 80,000 100,000 Total equity $935,000 $802,000 Dividend payable 25,000 15,000 Other Liabilities 25,000 25.000 Total Liabilities 50,000 40,000 Total Equity and Liabilities $985,000 $842,000Receivables 80,000 30,000 Inventory 100,000 170,000 Plant nd Equipment 200,000 500,000Acc Depreciation (115,000) (88,000) Land 100,000 80,000 Share in James Ltd 40,000 Deferred Tax assets 50,000 40,000 Other assets $30,000 $110,000 Total Assets $985,000 $842,000 Other Information a. The management of Berry Itd values any non-controlling interest in James Ltd at fair value. b. During the current financial year James Ltd sold inventory to Berry Ltd for 23,000, recording a profit before tax of $3000. Fifty percent of this inventory is still on hand with Berry Ltd c. During the 2019-2020 period, Berry Ltd sold inventory to James Ltd for $18,000. The inventory cost Berry $16,000 to produce. James Ltd has not sold any of these items. d. During the current financial year James Itd paid 1000 to Berry Ltd for services rendered e. During the 2018-19 period, James Itd sold inventory to Berry Ltd. At 30 June 2019, Berry Ltd still had inventory on hand on which James Ltd had recorded a before tax profit Of $4,000. f. On 1 July 2018, James Itd sold plant to Berry Itd for $150,000, recording a profit of 20,000 before tax. Berry Ltd applies 10% p.a straight-line method of depreciation in relation to these assests. g. The balance of the reserve at 1 July 2019 were $35000 for Berry Ltd and $50000 for James Ltd