Larry LTD purchased all the shares of Williiam Ltd on 31 December 20X4. Larry's assets were recorded at fair value except for the following:

Land: Carrying amount $47000 Fair value $75000

Inventory: Carrying amount $23000 Fair value $25000

Equipment: Carrying amount $50 000

Fair value $75 000

Accounts receivable: Carrying amount $33 000 Fair value $29 000

Additional information for the above assets:

Larry uses the AASB 116 cost model to measure the land and equipment but, for group/consolidation purposes, revaluation to fair value is the model applied.

Fair value of the land at 31 December 20X6 was $90,000.

inventory held at the control date was still in stock unitl 31 December 20X5. All of the inventory was sold to external parties in the year ended 31 December 20X6. The equipment had a remaining useful life of 5 years at the control date. The residual value is nil.

The equipment originally cost $70,000.

Required:

Prepare journal entries for the required consolidation data adjustments on 31 December 20X6, the year end. (

8 marks) Hint for adjustment related to inventory: you can show the single combined adjustment entry.

Reminder:

No marks will be awarded for workings/calculations. are NOT required for journal entries. Use the provided journal entry template to enter your answer.