Ethan Ltd acquired all the issued shares (ex div.) of Darren Ltd on l July 2017 for $110 000. At this date Darren Ltd recorded a dividend payable of $10 000 and equity of: Share capital Retained earnings Asset revaluation surplus $54000 36000 18000 All the identifiable assets and liabilities of Darren Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value $14000 92500 $16000 Inventories Machinery (cost $100 000) 94000 The machinery was considered to have a further 5-year life. Of the inventory, 90% was sold by 30 June 2018. The remainder was sold by 30 June 2019. Both Darren Ltd and Ethan Ltd use the valuation method to measure the land. At 1 July 2017, the balance of Ethan Ltd's asset revaluation surplus was S13 500. In May 2018, Darren Ltd transferred $3000 from the retained earnings at 1 July 2017 to a general reserve. The tax rate is 30%. The following information was provided by the two companies at 30 June 2018. Darren Ltd Ethan Ltd Profit before tax 120000 S 12500 (56000) (4200) income tax expense 64000 80000 Profit for the year Retained earnings (1/7/17) 8300 36 000 44 300 144000 Transfer to general reserve (3000 $ 144000 $ 41300 Retained earnings (31/7/18) $360000 144 000 10000 $ 54000 Share capital Retained earnings General reserve 41300 3000 Asset revaluation surplus 18 500 20000 42500 Liabilities 13000 575000 $131300 $ 20000 125600 33000) Land S 160000 Plant and machinery Accumulated depreciation- Plant and machinery Inventories 360000 (110000) 55000 110000 18700 Shares in Darren Ltd $575000 $131300 Required: 1- Acquisition Analysis at 30 June 2018. 2- Worksheet Adjustment journal entries at 30 June 2018 3- Complete Worksheet