Lion Ltd owns $100$ per cent of the shares of Pioneer Ltd$,$ acquired on $1$ July $2022$ for $$3\mathrm{.}5$ million when the shareholders' funds of Pioneer Ltd were:

$\backslash$table$[[,$$$],[$Share capital,$1,750,000],[$Retained earnings,$1,400,000],[,3,150,000]]$

All assets of Pioneer Ltd are fairly stated at acquisition date. The directors believe that there has been an impairment loss on the goodvill of $$35,000$ for the year ended $30$ June $2023.$

During the $2023$ financial year, Pioneer Ltd sells inventory to Lion Ltd at a sale price of $$700,000.$ The inventory cost Pioneer Ltd $$420,000$ to produce. At $30$ June $2023,$ half of the inventory is still on hand with Lion Ltd$.$ The tax rate is $33$ per cent.

The financial statements of Lion Ltd and Pioneer Ltd at $30$ June $2023$ are as follows:

RECONCILIATION OF OPENING AND CLOSING RETAINED EARNINGS

$\backslash$table$[[,\backslash$table$[[$Lion Ltd$],[($$$000)]],\backslash$table$[[$Pioneer Ltd$],[($$$000)]]],[$Sales revenue,$4,200,1,400],[$less Cost of goods sold,$(1,750),(490)],[$less other expenses,$(210),(105)],[$Other revenue,$245,87\mathrm{.}5],[$Profit$,2,485,892\mathrm{.}5],[$Tax expense,$700\_),(350)],[$Profit after tax,$1,785,542\mathrm{.}5],[$Retained earnings $-1$ July $2022,3\mathrm{.}500,1\mathrm{.}400],[,5,285,1\mathrm{.}942\mathrm{.}5],[$Dividends paid,$7000\_),(140)],[$Retained earnings $-30$ June $2023,4\mathrm{.}585,1\mathrm{.}802\mathrm{.}5]]$

STATEMENT OF FINANCIAL POSITION

$\backslash$table$[[$Shareholders$\text{'}$ equity,$\backslash$table$[[$Lion Ltd$],[($$$000)]],\backslash$table$[[$Pioneer Ltd$],[($$$000)]]],[$Retained earnings,$4,585,1,802\mathrm{.}5],[$Share capital,$14,000,1,750],[$Current liabilities,,$],[$Accounts payable,$350,297\mathrm{.}5],[$Non$-$current liabilities,,$],[$Loans$,2\mathrm{.}100,875],[,21,035,4,725],[$Current assets,,$],[$Cash$,875,87\mathrm{.}5],[$Accounts receivable,$525,612\mathrm{.}5],[$Inventory$,2,100,1,050],[$Non$-$current assets,,$]]$

$\backslash$table$[[$Land$,5,040,1,400],[$Plant$,8,645,1,400],[$Investment in Pioneer Ltd$,3,500,-],[$Future income tax benefit,$350,175],[$Goodvill$,-$cdots,$-\_],[,21\mathrm{.}035,4\mathrm{.}725]]$

REQUIRED:

Prepare the consolidated financial statements in Microsoft Word file for Lion Ltd and its controlled entity for $2023.$ You should include following calculations:

a$.$ Reconciliation of opening and closing retained earnings for Lion and Pioneer Ltd$,$ including elimination and adjusting calculation as well as consolidation calculations. Show the related journal entries.

b$.$ Consolidated statement of financial position of Lion Ltd and its controlled entities as at $30$ June $2023.$

c$.$ Consolidated statement of profit or loss and other comprehensive income of Lion Ltd and its controlled entities for the year ended $30$ June $2023.$

d$.$ Consolidated statement of changes in equity for the year ended $30$ June $2023.$