Hitech Ltd acquired all of the issued share capital of Lotech Ltd on 30 June 2016 for a cash consideration of $400,000Share capital300,000 Retained earnings50,000 Net assets350,000 At that time the net assets of Lotech Ltd were represented as follows:When Hitech acquired its investment in Lotech the following information applied:? Land held by Lotech had a fair value $10,000 greater than the carrying value? A contingent liability relating to an unsettled legal claim with a fair value of $3,000was recorded in the notes to Lotech's financial statements The tax rate is 30%Required:(a) Analyse the situation and provide consolidation journal entries (narrations are required)(b) Provide the consolidated statement of financial position for the above entities as at 30 June 2017.

Hitech Lotech Ltd. Ltd. Adjustments DR CR revenue 70,000 24,000 of goods sold 20,000 6,000 s profit 50,000 18,000 r expenses 7,143 3,714 t before tax 42,857 14,286 ne tax expenses 12,857 4,286 profit after tax 30,000 10,000 ing retained earnings 70,000 50,000 ing retained earnings 100,000 60,000 capital 600,000 300,000 R tors 160,000 120,000 rred Tax Liability ision for legal claim Total 860,000 480,000 in bank 460,000 190,000 tory 10,000