Harpoon Ltd acquired all of the issued shares of Spearfish Ltd (cum div) on the 1st July 2022. Spearfish Ltd’s financial position at the date of acquisition was as follows:

Carrying amount Fair value

Plant and machinery $520,000 $458,600

Accumulated depreciation (66,500)

453,500

Goodwill 12,500

Cash at bank 13,000 13,000

Accounts receivable 39,500 39,500

Inventories 39,000 49,400

$557,500

Liabilities 49,900 49,900

Dividends payable 20,800 20,800

Share capital: 156,000 shares 312,000

Special reserve 60,300

Retained earnings 114,500

$557,500

Spearfish Ltd had an internally generated patent that Harpoon Ltd valued at $26,000, which had an expected useful life of 5 years with any income from it being spread evenly over its life. The plant and machinery had a remaining life of 10 years with a straight line depreciation rate being applied. All inventory was sold by 30th June 2023. In June 2023 the CFO conducted an impairment test on goodwill and the 1st July 2022 balance was written off. The dividend payable was paid in August 2022. Harpoon Ltd provided the following purchase consideration for the exchange of shares in Spearfish Ltd. 130,000 ordinary shares in Harpoon Ltd with each share being attributed a fair value of $2.10. There was a cash payment of $104,000 and a software licence with a fair value of $143,000. Legal and financial advice provided to Harpoon Ltd incurred fees of $13,000 and the costs of share issue were $10,400. The Spearfish Ltd retained earnings balance at acquisition funded a bonus dividend of $104,000 of one share for every three shares paid on 14th February 2025. The tax rate is 30%

Required Prepare the consolidation journal entries for consolidated financial statements prepared by Harpoon Ltd at 30 June 2027. Acquisition analysis. BCVR entries. Pre-acquisition entries at 1/7/22 and 30/6/27