King Ltd owns all the shares of Smith Ltd. The shares were acquired on 1 July 2018 by King Ltd at a cost of $720,000. At the acquisition date, the capital of Smith Ltd consisted of 100,000 ordinary shares each fully paid at $3. There were retained earnings of $120,000. All the identifiable assets and liabilities of Smith Ltd were recorded at amounts equal to fair value except for the following:

	Carrying Amount	Fair Value
Patent	$20,000	$35,000
Land	$110,000	$150,000
Machinery (cost $200,000)	$160,000	$170,000

Patent and land had both been sold in 2019. Machinery has been depreciated at a rate of 10% a year.

Additional information:

1. Intragroup sales of inventory for the year ended 30 June 2020 was $50,000. On 30 June 2020, inventory held by King was purchased from Smith at a profit of $5000. 50% of the stock is on hand.
2. On 1 July 2019, inventory held by Smith Ltd, was purchased from King in the previous year at a profit of $6000. 0% of the stock is on hand at 30 June 2020.
3. Intragroup machinery on hand on 30 June 2020:
   1. King Ltd: purchased from Smith Ltd on 1 July 2019 for $30,000 at a profit of $3,000. Depreciation rate is 20% per year.
4. Smith Ltd had purchased from King Ltd an item of inventory. The carrying amount in Kings records at time of sale (1 Jan 2019) was $10,000 and it was sold at a profit of $4,000. The inventory is still on hand as at 30 June 2020.

Required:

Prepare all journal entries required for consolidation of King Group Ltd for the year ended 30 June 2020. Show all calculations necessary. Consolidation worksheet is not required.