On 1 August 2018, Erik Ltd acquired 20%of the shares in Firm Ltd for $8000. Erik Ltd used fur value method to measure this investment with movements", fair value beng reco abd prolt or loss. At 1 uly 2017, the fair value of this investment was $15 400. The original investment in Finn Ltd was due to the fact that Finn Ltdwas undertaking research into particular microbiological elements that could influence the profitability of Erik Ltd. With the continuing success of this esearch Erik Lnd decided to acquire the remaining shares (com div.) in Finn Ltd On 1 July 2017, Erk Ltd made an offer to buy the remaining shares in Finn Ltd for $151 000 cash. This offer was accepted by the shareholders of Finn Ltd. On 1 July 2037, immediately after the busine combination, the statement of inancial position of Finn Ltd was as follows Share capital Retired ings Dvidend payable 90000 Total equity Other labilties otal equity and iabilitie Total assets On analysing the financial statements of Finn Ltd, Enik Ltd determined that all the assets and iabilities recorded by Finn Ltd were shown at amounts equal to their tair values except for Plant and equipment (cost 546 000 42000 The plant and equipment is expected to have a further ear ile and is deprecutedon a s age- ine basis. The inventory was all sold by 30 June 2018 Finn Ltd had expensed al the outlays on research and development. Erik Ltd placed far val e of 12 000 on this aset Finn Ltd also had reported a contingent lubility at 30 une 2027 i relation to dlaims by customers for damaged goods. Enik Ltd placed a fair value of $3000 on these clains The research and development is amortised evenly over a 0-year period. The dams by tomers were ettled in May 2018 for $2800 the company tax rate is 30%. (a) Prepare the consolidated financial statements of Erik Ltd at 1 Ady 2017, immediately aher th business combination b) Prepare the corsolidation werksheet entriesat 30 June 2018. On 1 August 2018, Erik Ltd acquired 20%of the shares in Firm Ltd for $8000. Erik Ltd used fur value method to measure this investment with movements", fair value beng reco abd prolt or loss. At 1 uly 2017, the fair value of this investment was $15 400. The original investment in Finn Ltd was due to the fact that Finn Ltdwas undertaking research into particular microbiological elements that could influence the profitability of Erik Ltd. With the continuing success of this esearch Erik Lnd decided to acquire the remaining shares (com div.) in Finn Ltd On 1 July 2017, Erk Ltd made an offer to buy the remaining shares in Finn Ltd for $151 000 cash. This offer was accepted by the shareholders of Finn Ltd. On 1 July 2037, immediately after the busine combination, the statement of inancial position of Finn Ltd was as follows Share capital Retired ings Dvidend payable 90000 Total equity Other labilties otal equity and iabilitie Total assets On analysing the financial statements of Finn Ltd, Enik Ltd determined that all the assets and iabilities recorded by Finn Ltd were shown at amounts equal to their tair values except for Plant and equipment (cost 546 000 42000 The plant and equipment is expected to have a further ear ile and is deprecutedon a s age- ine basis. The inventory was all sold by 30 June 2018 Finn Ltd had expensed al the outlays on research and development. Erik Ltd placed far val e of 12 000 on this aset Finn Ltd also had reported a contingent lubility at 30 une 2027 i relation to dlaims by customers for damaged goods. Enik Ltd placed a fair value of $3000 on these clains The research and development is amortised evenly over a 0-year period. The dams by tomers were ettled in May 2018 for $2800 the company tax rate is 30%. (a) Prepare the consolidated financial statements of Erik Ltd at 1 Ady 2017, immediately aher th business combination b) Prepare the corsolidation werksheet entriesat 30 June 2018