not sure how to do adjustments, which one should be adjusted?

Thomson Ltd decides to proceed with its plan to expand its operations. On 20 March 2016, Thomson acquires all the ordinary shares of a competitor, Morse Ltd, for a cash payment of $2,400,000. At this date, the records of Morse Ltd include the following information: Paid-up capital 1,700,000 General reserve 40,000 Retained earnings 423,820 Total shareholders' equity 2,163,820 All the identifiable assets and liabilities in the books of Morse Ltd are recorded at fair values except the following: Carrying Amount Fair Value Remaining Useful Life Furniture and Fixtures 32,000 40,000 3 years (straight line) Motor vehicles 27,000 30,000 2 years (straight line) The following information relates to the operations of the two companies over the past financial year and the financial data are provided in Appendix 2. Copies of the financial data and template of the consolidation worksheet in Excel THOMSON LIMITED 1. It is the policy of the company to adopt the FIFO method of accounting for inventory. All sales of inventory carry a mark up of 20%. The company always adopts the diminishing value method for depreciating non-current assets for taxation purposes. The company adopts the cost model for all non-current assets except land, for which the revaluation model is adopted. 2. On 1 January 2016, Thomson Ltd entered into a leasing contract with Field Financing Ltd to lease equipment for a period of five years. The terms of the lease agreement were as follows: The agreement requires equal half-yearly payments of $17,500 payable on 1 January and 1 July each year commencing 1 January 2016. The equipment has an estimated life of eight years. The fair value of the equipment at the inception of the lease was $163,980. The equipment has an unguaranteed residual value of $24,220. Thomson Ltd will reimburse the lessor for insurance, taxes and maintenance charges of $8,000 annually. This amount is not included in the above lease payments. For the year ending 30 June 2016, $4,000 has been paid. The implicit rate of interest in the lease agreement is 8% per annum. No bargain purchase or renewal options were included in the contract. The contract contains a termination clause at the option of the lessee exercisable after 31 December 2010 by providing twelve months' notice. The trainee accountant was unfamiliar with accounting for leases and has not made any entry in respect of the above lease contract. 3. For tax purposes, the following were claimed as deductions as at 30 June 2016: Depreciation - Plant and Equipment 550,000 Depreciation - Motor Vehicles 55,100 Depreciation - Furniture and Fixtures 43,175 Amortisation - Patents 323,100 Provisions paid 60,000 Bad Debts written off 245,000 Accumulated depreciation of non-current assets for tax purposes on this date were as follows: Accumulated Depreciation - Plant and Equipment 6,943,235 Accumulated Depreciation - Motor Vehicles 121,100 Accumulated Depreciation - Furniture and Fixtures 195,625 Accumulated Depreciation - Patents 367,250 The trainee accountant is unfamiliar with accounting for income tax and has not made any entries in relation to income tax effects. 4. On 1 April 2016, Motor Vehicles with a net book value of $30,000 (Cost - $95,000) were sold for $20,000. Thomson will be able to claim as tax deduction a loss on disposal of $5,000. The trainee accountant is unfamiliar with accounting for income tax and has not made any entries in relation to income tax effects or the sale. 5. Plant and equipment were purchased from Morse on 30 April 2016 for $130,000 and paid for in cash. Thomson depreciated the plant and equipment at a rate of 30% p.a. 6. On 28 March 2016, inventory was purchased from Morse for $95,500. $26,000 of the inventory remained on hand at 30 June 2016. 7. Other relevant information: A transfer of $75,000 is to be made to the General Reserve. Dividends are recognised when proposed. The directors declared a final dividend of $200,000 for the year ending 30 June 2016. No interim dividend was paid during the year. On 1 January 2012, plant and equipment were sold to Morse that had a book value of $95,000 with a remaining useful life of five years. Question: Prepare the general journal entries as at 30 June 2016 to effect the necessary adjustments for Thomson Ltd. For each adjustment, briefly explain in a paragraph (you will need to be concise) your chosen accounting treatment and show relevant workings