Berry Springs Ltd acquired all the issued shares (cumm div.) of Litchfield Ltd on 1 July 2014. At this date the shareholders equity of Litchfield Ltd was:

Share capital 100 000 shares	$	450 000
General reserve		45 000
Asset revaluation surplus		45 000
Retained earnings		15 000

At 1 July 2014, the accounting records of Litchfield Ltd contained a dividend payable of $30 000. This dividend was paid in August 2014. All the identifiable assets and liabilities at acquisition date were recorded at amounts equal to their fair values except for:

		Carrying amount	Fair value
	Plant (cost $290 000)	$220 000	$227 500
	Inventory	160 000	175 000

The plant was considered to have a further 5-year life. It was sold on 1 January 2017 for

$118 000. The inventory was all sold by 30 June 2015. Litchfield Ltd did not record a contingent liability relating to a lawsuit by a customer for faulty goods. Litchfield Ltd considered this liability had a fair value of $18 000. The lawsuit was settled in May 2015 when Litchfield Ltd was required to pay damages of $20 000.

Additional information

1. On 1 July 2015, Berry Springs Ltd sold plant to Litchfield Ltd at a before-tax profit of $6000. This class of non-current asset is depreciated at 20% p.a. on cost by Berry Springs Ltd while Litchfield Ltd uses a rate of 10% p.a. on cost.
2. In June 2016 Litchfield Ltd sold $50 000 worth of inventory to Berry Springs Ltd at a before-tax profit of $5400. At 30 June 2017, inventory on which Litchfield Ltd had made a profit of $750 on sale to Berry Springs Ltd was still on hand.
3. On 10 February 2017, Litchfield Ltd used the whole of the general reserve existing at 1 July 2014 to pay a bonus dividend of three shares for every ten held.
4. Both Berry Springs Ltd and Litchfield Ltd use the valuation method to measure land. In June 2017, Berry Springs Ltd recorded revaluation increases of $15 000 while Litchfield Ltd recorded increases of $12 000.
5. The tax rate is 30%

Financial information provided by the companies at 30 June 2017 was as follows:

		Berry Springs Ltd	Litchfield Ltd
Plant		$ 558 750	$ 318 000
Accumulated depreciation plant		(318 000)	(165 000)
Land		531 300	397 500
Shares in Litchfield Ltd		594 000
Inventory		270 000	240 000
Receivables		43 500	22 500
Cash		37 500	15 000
Total assets		$1 717 050	$ 828 000
Dividend payable		15 000	6 000
Other current liabilities		52 050	60 000
Loans		150 000	60 000
Total liabilities		$ 217 050	$ 126 000
Share capital		$1 200 000	$495 000
Asset revaluation surplus		225 000	120 000
Retained earnings (1/7/16)		22 500	18 000
Revenues		162 000	210 000
Expenses		(48 000)	(80 000)
Gains/(losses) on sale of non-current		6 000	5 000
assets
Tax expense		(52 500)	(60 000)
Dividend declared		(15 000)	(6 000)
Total equity		$1 500 000	$ 702 000

Required Prepare the consolidation worksheet JOURNAL ENTRIES for the preparation of consolidated financial statements by Berry Springs Ltd at 30 June 2017.

NOTE a consolidation worksheet is NOT required.

Your answer should include an acquisition analysis with a calculation of goodwill, business combination valuation entries, pre-acquisition entries, dividend adjustments, intragroup sales and transfers.