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morrison ltd owns all the shares of scarlett ltd. the shares were acquired on 1 july 2018 by morrison ltd at a cost of $620,000. at the acquisition date, the capital of scarlett ltd consisted of 100,000 ordinary shares each fully paid at $2. there were retained earnings of $20,000. all the identifiable assets and liabilities of scarlett ltd were recorded at

Question: Morrison Ltd Owns All The Shares Of Scarlett Ltd. The Shares Were Acquired On 1 July 2018 By Morrison Ltd At A Cost Of $620,000. At The Acquisition Date, The Capital Of Scarlett Ltd Consisted Of 100,000 Ordinary Shares Each Fully Paid At $2. There Were Retained Earnings Of $20,000. All The Identifiable Assets And Liabilities Of Scarlett Ltd Were Recorded At

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Morrison Ltd owns all the shares of Scarlett Ltd. The shares were acquired on 1 July 2018 by Morrison Ltd at a cost of $620,000. At the acquisition date, the capital of Scarlett Ltd consisted of 100,000 ordinary shares each fully paid at $2. There were retained earnings of $20,000. All the identifiable assets and liabilities of Scarlett Ltd were recorded at amounts equal to fair value except for the following:

Carrying Amount Fair Value Patent $20,000 $35,000 Land $110,000 $150,000 Machinery (cost $200,000) $160,000 $170,000 Patent and land had both been sold in 2019. Machinery has been depreciated at a rate of 10% a year. Additional information:

Intragroup sales of inventory for the year ended 30 June 2020 was $40,000. On 30 June 2020, inventory held by Morrison was purchased from Scarlett at a profit of $1000. 100% of the stock is on hand

On 1 July 2019, inventory held by Scarlett Ltd, was purchased from Morrison in the previous year at a profit of $8000. 100% of the stock is on hand at 30 June 2020.

Intragroup machinery on hand on 30 June 2020:

Morrison Ltd: purchased from Scarlett Ltd on 1 July 2019 for $20,000 at a profit of $2,000. Depreciation rate is 10% per year.

Scarlett Ltd had purchased from Morrison Ltd an item of inventory. The carrying amount in Morrisons records at time of sale (1 Jan 2019) was $10,000 and it was sold at a profit of $3,000. The inventory is still on hand as at 30 June 2020.

Required: Prepare all journal entries required for consolidation of Morrison Group Ltd for the year ended 30 June 2020. Show all calculations necessary. Consolidation worksheet is not required.