following information of the parent company Peter Ltd and its subsidiary company Silvia Ltd has been extracted from their financial records at 30 June 2020. Income statement Peter Ltd (5) Silvia Ltd (5) Sales revenue 344,000 125,000 Cost of goods sold 149,000 102,000 Gross profit 195,000 23.000 Dividend revenue -18,000 25,000 Gain on sale of non-current asset 3,000 500 Depreciation expense 12.000 11,000 Other expenses 11,000 4,500 Profit before tax 157,000 33,000 Tax expense 11,100 6,000 Profit for the year 145.900 27,000 Retained earnings - 30 June 2019 210,000 60,000 Interim dividend paid 10,000 20,000 Retained earnings - 30 June 2020 345,900 67,000 Peter Ltd (81 Silvia Ltd (5) Statement of financial position Shareholders' equity Retained earnings Share capital 345.900 67,000 53,000 100.000 Other reserves 60.000 85,000 Current liabilities Accounts payable Deferred tax liability Total liabilities and equity Current assets 90,000 40,000 635.900 65,000 270,000 Cash 199,900 95,000 Inventory 102,000 50,000 Non-current assets Plant and Machinery Investment in Serum Ltd 200,000 100,000 104,000 Deferred tax asset 30,000 25,000 Tatal assets 635 900 270.000 Additional Information Peter Ltd and Silvia Ltd are tax paying companies and pay their own income taxes. The income tax rate is 30% Peter Ltd acquired its 90% interest in Silvia Ltd on 1 July 2017 for $60000. At the date the capital and reserves of Subblit Ltd were: Share capital $53,000 Retained earnings $45,111 Total $98,111 The management of Peter Ltd measures the non-controlling interest in Silvia Ltd at fair value. At the date of acquisition, all assets of Silvia Ltd were stated at fair value except for machinery (Boomerang). The fair value of machinery was greater than the carrying value by $3,000. The cost of machinery was $20,000 and accumulated depreciation was $5,000, with a remaining useful life of 4 years. The opening inventory (Rockblast) of Peter Ltd as at 1 July 2019 included inventory acquired from Silvia Ltd for $30,000, which had cost $20,000 to produce. This inventory was sold outside the group during the current period. . During the year ending 30 June 2019, the goodwill resulting from consolidation impaired by $2,000. During the year ending 30 June 2020, the goodwill resulting from consolidation further impaired by $3,000. . On 1 July 2019, Peter Ltd sold Plant (Robust) for $23,000 to Silvia Ltd. The cost of the Plant was $30,000, and the accumulated depreciation was $10,000. The Plant had two years of remaining useful life at the date of sale with no residual value. The current year is considered to prepare consolidated financial statements is the year ending 30 June 2020. (d) Required: Prepare and show with workings: (a) Consolidation journal entries for the fair value adjustment of machinery as at the date of acquisition of Silvia Ltd by Peter Ltd. (b) Consolidation journal entries for the depreciation adjustment resulting from the fair value adjustment of machinery from the date of acquisition up to the year ending 30 June 2020, and the impact of taxation resulting from the revaluation adjustment. (c) Consolidation journal entries for the elimination of Peter Ltd's investment in Silvia Ltd to prepare consolidation financial statements for the year ending 30 June 2020. Show detailed workings for each answer in a format that includes a description of each entry. Consolidationjournalentryonthepre- taxsaleofinventorysoldwithinthegroupinthepreviousperiod and its associated tax effect. (e) Consolidationjournalentryforthe impairmentofgoodwillonconsolid ation. (1) Consolidation journal entry for the Plant sold within the group and its associated tax effect. (9) Consolidation journal entry for the depreciation adjustment resulting from the Plant sold within the group, and its associated tax effect (h) Consolidation journal entry for the intragroup dividends. (i) Itemise and show the non-controlling interest ownership in the group, including goodwill assigned to them, on the acquisition date (i.e. 1 July 2017) (Step 1). () Itemise and show the non-controlling ownership in the group, with the movements in share capital and reserves between the date of Peter Ltd's acquisition of Silvia Ltd (1 July 2017) and the beginning of the current reporting period (1 July 2019) (Step 2). (k) Itemise and show the non-controlling ownership in the group with equity item for the year ending 30 June 2020 (Step 3). (1) Calculate and show the total non-controlling ownership interest in the group using Steps 1, 2, 3, and other information following information of the parent company Peter Ltd and its subsidiary company Silvia Ltd has been extracted from their financial records at 30 June 2020. Income statement Peter Ltd (5) Silvia Ltd (5) Sales revenue 344,000 125,000 Cost of goods sold 149,000 102,000 Gross profit 195,000 23.000 Dividend revenue -18,000 25,000 Gain on sale of non-current asset 3,000 500 Depreciation expense 12.000 11,000 Other expenses 11,000 4,500 Profit before tax 157,000 33,000 Tax expense 11,100 6,000 Profit for the year 145.900 27,000 Retained earnings - 30 June 2019 210,000 60,000 Interim dividend paid 10,000 20,000 Retained earnings - 30 June 2020 345,900 67,000 Peter Ltd (81 Silvia Ltd (5) Statement of financial position Shareholders' equity Retained earnings Share capital 345.900 67,000 53,000 100.000 Other reserves 60.000 85,000 Current liabilities Accounts payable Deferred tax liability Total liabilities and equity Current assets 90,000 40,000 635.900 65,000 270,000 Cash 199,900 95,000 Inventory 102,000 50,000 Non-current assets Plant and Machinery Investment in Serum Ltd 200,000 100,000 104,000 Deferred tax asset 30,000 25,000 Tatal assets 635 900 270.000 Additional Information Peter Ltd and Silvia Ltd are tax paying companies and pay their own income taxes. The income tax rate is 30% Peter Ltd acquired its 90% interest in Silvia Ltd on 1 July 2017 for $60000. At the date the capital and reserves of Subblit Ltd were: Share capital $53,000 Retained earnings $45,111 Total $98,111 The management of Peter Ltd measures the non-controlling interest in Silvia Ltd at fair value. At the date of acquisition, all assets of Silvia Ltd were stated at fair value except for machinery (Boomerang). The fair value of machinery was greater than the carrying value by $3,000. The cost of machinery was $20,000 and accumulated depreciation was $5,000, with a remaining useful life of 4 years. The opening inventory (Rockblast) of Peter Ltd as at 1 July 2019 included inventory acquired from Silvia Ltd for $30,000, which had cost $20,000 to produce. This inventory was sold outside the group during the current period. . During the year ending 30 June 2019, the goodwill resulting from consolidation impaired by $2,000. During the year ending 30 June 2020, the goodwill resulting from consolidation further impaired by $3,000. . On 1 July 2019, Peter Ltd sold Plant (Robust) for $23,000 to Silvia Ltd. The cost of the Plant was $30,000, and the accumulated depreciation was $10,000. The Plant had two years of remaining useful life at the date of sale with no residual value. The current year is considered to prepare consolidated financial statements is the year ending 30 June 2020. (d) Required: Prepare and show with workings: (a) Consolidation journal entries for the fair value adjustment of machinery as at the date of acquisition of Silvia Ltd by Peter Ltd. (b) Consolidation journal entries for the depreciation adjustment resulting from the fair value adjustment of machinery from the date of acquisition up to the year ending 30 June 2020, and the impact of taxation resulting from the revaluation adjustment. (c) Consolidation journal entries for the elimination of Peter Ltd's investment in Silvia Ltd to prepare consolidation financial statements for the year ending 30 June 2020. Show detailed workings for each answer in a format that includes a description of each entry. Consolidationjournalentryonthepre- taxsaleofinventorysoldwithinthegroupinthepreviousperiod and its associated tax effect. (e) Consolidationjournalentryforthe impairmentofgoodwillonconsolid ation. (1) Consolidation journal entry for the Plant sold within the group and its associated tax effect. (9) Consolidation journal entry for the depreciation adjustment resulting from the Plant sold within the group, and its associated tax effect (h) Consolidation journal entry for the intragroup dividends. (i) Itemise and show the non-controlling interest ownership in the group, including goodwill assigned to them, on the acquisition date (i.e. 1 July 2017) (Step 1). () Itemise and show the non-controlling ownership in the group, with the movements in share capital and reserves between the date of Peter Ltd's acquisition of Silvia Ltd (1 July 2017) and the beginning of the current reporting period (1 July 2019) (Step 2). (k) Itemise and show the non-controlling ownership in the group with equity item for the year ending 30 June 2020 (Step 3). (1) Calculate and show the total non-controlling ownership interest in the group using Steps 1, 2, 3, and other information