Consolidated Entity Ref $'000 5,430 601 3,684 664 2 ? e 412 e 188 399 ? 313 ? 1,074 (53) (107) 1,411 750 Consolidation worksheet for financial year ended 30 June 2021 Joey Chandler Adjustments Ltd Ltd Debit Credit $'000 $'000 $'000 $'000 Sales revenue 4,360 1,570 500 f Less cost of goods sold Opening inventories 375 256 i 30 Add purchases 3,080 1,104 f 500 less closing inventories 425 279 40 8 Cost of goods sold 3.030 1,081 Gross profit 1,330 489 Dividend revenue 70 0 70 j Management fee revenue 25 0 25 d Interest revenue 0 15 15 Depreciation expense 245 187 20 Finance costs 105 98 15 Other expenses 325 79 20 c/d 25 Profit before tax 750 140 Tax expense 265 45 15.00 i/c/ 12.00 Profit after tax for the year 485 95 Retained earnings 1 July 2020 849 394 233 b/11 64 Dividends paid (53) (28) 28 Dividends declared (107) (42) i 42 Retained earnings 30 June 1,174 419 2021 Issued capital 750 400 400 b Revaluation surplus 190 0 Fair value adjustment b/a 81 Shareholders' equity 2,114 819 Assets Cash 190 170 Accounts receivable 173 109 h h 40 Dividends receivable 42 0 k 42 Inventories 425 279 E 40 Investment in Chandler Ltd 610 0 b 640 - Loan to locy Ltd 0 250 e 250 Land 1,099 450 120 Buildings 1,440 968 Accumulated depreciation (475) __ (525) Plant and equipment 1,025 690 10 ! Accumulated depreciation (275) (290) 60 ! 90 Goodwill (net) 36 20 Deferred tax asset 35 25 36.00 / 18.00 Total assets 4.319 2.126 Less liobilities Current taxes payable 111 87 Accounts payable 292 50 40 h Dividend payable 107 42 42 k Loan from Chandler Ltd 250 0 0 250 C Mortgage loan 1,255 1,100 Deferred tax liabilities 190 28 36 Net assets 2,114 819 1,996.00 1,996.00 190 360 242 661 a 1,669 2,408 (1,000) 1,725 1595) b/c 16 78 5,567 198 302 107 2,355 254 7 What does the $10 debit (Dr) adjustment to plant and equipment most likely represent? O a. Consolidation adjustment to eliminate an unrealised prior year profil on sale of intragroup plant and equipment. O b. Consolidation adjustment to recognise the fair value increment on the plant and equipment at the date of acquisition. O c. Consolidation adjustment to eliminate the fair value increment on the plant and equipment at the date of acquisition. O d. Consolidation adjustment to eliminate an unrealised current year profit on sale of intragroup profit of the plant and equipment