Hi dear helper,

Please letting me know how to calculate it(step by step) and give me an explanation about the steps, thanks, I'll give you the thumb!

(If you can't or do not want to, please let someone else do, thanks)

On 1 January 2019, AB Ltd. a parent entity, purchased 30% of the voting shares in D Ltd for $350,000. The directors of AB Ltd have formed the opinion that AB Ltd has significant influence over D Ltd. AB Ltd uses the cost method to account for its investment in associates in its single entity financial statements and the equity method in the consolidated financial statements At acquisition date. D Ltd shareholders' equity was represented by: Share capital 500,000 Retained earnings 300,000 Revaluation surplus 200,000 1,000,000 At acquisition date all of D Ltd assets were recorded at fair value except for a patent which had a fair value $50.000 greater than the carrying amount. The remaining life of the patent is 5 years. The following has been extracted from the financial statements of D Ltd for the year ended 31 December 2021: Net profit after tax 50,000 Retained earnings 1 January 2020 380,000 Dividend paid (15,000) Retained earnings 31 December 2021 415,000 Share capital 500,000 Revaluation surplus 250,000 Shareholders' equity 1,165,000 Other information: The company income tax rate is 30% in all periods. The is no change in the AB Ltd shareholding in D Ltd over the relevant periods. Required: Prepare equity accounting adjusting journal entries to account for the D Ltd investment in the AB Ltd consolidated financial statements for the year ended 31 December 2020. The entry to record the tax effect of the temporary difference is not required