MCL Ltd is a wholesaler of chemicals and a distributor. On 1 July 2021, MCL acquired all the equity in Bulldog Ltd, a company incorporated in Israel for AUD $1,550,000. At that date, the equity of Bulldog Ltd consisted of share capital ILS 4,800,000 and retained earnings ILS 800,000. (Note: ILS = Israeli New Shekel, Israeli currency) At the date of acquisition, all of the assets and liabilities were valued at fair value except for land, which was undervalued by ILS 600,000 (the carrying amount was ILS 2,800,000).

The exchange rates for the reporting period ending 30 June 2022 are shown below. 1 July 2021 AUD $1 = ILS 4 Average rate for the year AUD $1 = ILS 4.80 30 June 2022 AUD $1 = ILS 5

Bulldog Ltd’s functional currency is the Israeli New Shekel while the presentation currency is the Australian dollar. The tax rate in Australia is 30 percent, while the tax rate in Israel is 40 percent. The directors of MCL need your help to prepare consolidation worksheet entries as of 1 July 2021 and 30 June 2022.

Provide advice to the managing director of MCL Ltd, with relevant references to the Australian Accounting standards in your answer.