Gorgeous Ltd acquired 80% of the shares (cum div.) of Glad Ltd on 1 July 2018 by issuing 794,400 units of ordinary shares. At this date, the shareholders equity of Glad Ltd consisted of:

Share capital General reserve Asset revaluation surplus Retained earnings

$ 400 000 50 000 20 000 15 000

At this date, Glad Ltds liabilities included a dividend payable of $3,000 while the assets included goodwill of $37,500. The dividend was paid on 15 August 2018. All the identifiable assets and liabilities of Glad Ltd at 1 July 2018 had carrying amounts equal to their fair values except for:

	Carrying amount	Fair value
Plant (cost $200,000)	$100,000	$130,000
Brands	150,000	155,000
Land	90,000	100,000
Inventory	100,000	90,000

Glad Ltd also has a contingent liability of $4,500 which was not included in its financial statement. The following information was derived from Glad Ltds book:

Plant had an estimated useful life of 2 years.

Brands were assessed to have a useful life of 4 years.

Land was sold on 1 January 2019 for $90,000.

Inventory was all sold outside the group by 30 June 2019.

Gorgeous Ltd uses the partial goodwill method.

During the year ending 30 June 2020, the following events occurred:

(a) Glad Ltd sold inventory to Gorgeous Ltd for $12,000. This inventory had cost Glad Ltd $8,000. At 30 June 2020, one-fifth of this inventory still unsold by Gorgeous Ltd. The manager in charged has decided to write off the remaining inventory due to obsolesce.

(b) On 1 July 2019, Glad Ltd sold plant to Gorgeous Ltd for $22,500. The plant was purchased by Glad Ltd on 1 July 2017 at $50,000. Gorgeous Ltd reassessed the remaining useful life of the plant to be 2 years.

(c) Glad Ltd paid Harras Ltd for an amount of $4,000 in June 2019 in relation to the contingent liability estimated at the date of acquisition.

(d) Gorgeous Ltd applies the policy of recognizing dividend when cash is received.

(e) Both Gorgeous Ltd and Glad Ltd depreciates their non-current assets at 25% using straight-line method.

The tax rate is 30%.

Financial information provided by the two companies at 30 June 2020 is as follows:

	Gorgeous Ltd	Glad Ltd
Sales	$300,000	$240,000
Other income	110,000	50,000
Total income	410,000	290,000
Cost of sales	(220,000)	(184,000)
Other expenses	(106,000)	(51,000)
Total expenses	(326,000)	(235,000)
Trading profit	84,000	55,000
Gains/(losses) on sale of non-current assets	15,000	30,000
Profit before tax	99,000	85,000
Tax expense	(34,000)	(28,000)
Profit for the year	65,000	57,000
Retained earnings at 1 July 2019	50,000	18,000
Transfer to general reserve		(12,000)
	115,000	63,000
Dividend paid	(20,000)	(15,000)
Dividend declared	(10,000)	(6,000)
	(30,000)	(21,000)
Retained earnings at 30 June 2020	85,000	42,000
Share capital	500,000	400,000
General reserve	20,000	62,000
Asset revaluation surplus		30,000
Provisions	15,000	10,000
Payables	20,000	8,000
Deferred tax liabilities	5,000	2,000
Non-current liabilities	120,000	50,000
Total equity and liabilities	$765,000	$604,000
Shares in Glad Ltd	$397,200
Plant	460,000	$410,000
Accumulated depreciation plant	(370,000)	(250,000)
Land	80,000	120,000
Brands	100,000	170,000
Deferred tax assets	8,000	8,500
Goodwill		37,500
Cash	5,800	55,000
Receivables	2,000	18,000
Inventory	82,000	35,000
Total assets	$765,000	$604,000

Required

1. Prepare the consolidation worksheet entries for the preparation of consolidated financial statements by Gorgeous Ltd at 30 June 2020. (Show all workings)
2. Prepare consolidated worksheet for the preparation of consolidated financial statements by Gorgeous Ltd at 30 June 2020. (Show reference for each journal entry).
3. Prepare Consolidated Statement of Financial Position as at 30 June 2020 for Gorgeous Ltd. (Refer to Para 54 AASB 101).