Harley Ltd purchased all the equity of Davidson Ltd on 1 January 20X4 for $150 000. At the control date, the equity of Davidson was recorded as:

Paid-up capital $36 000

Retained profits $20 400

and its assets were recorded at fair value except for:

Buildings: Carrying amount $63 000 Fair value $133 200

The building was purchased 10 years ago for $120 000 and is being depreciated straight-line over 20 years. When purchased, its estimated residual value was $6 000. The building is carried at cost by Davidson Ltd and in the consolidation.

Goodwill impairment recognised was $7 000 in 20X4 and $10 500 in 20X5.

Required:

Prepare journal entries for consolidation data adjustments and/or eliminations:

1. at the control date;
2. one year after control date on 31 December 20X4; and

two years after control date on 31 December 20X5