On 1 July 2012 Sarah Ltd acquires all the shares in Jane Ltd for $814,000 cash

The financial statements of Jane Ltd as at 1 July 2012 shows the following:

Retained earnings245,000

Sharecapital211,000

The tax rate is 30%

At the date of acquisition all the net assets of Jane Ltd are at fair value except for the following:

Carrying amount

Fair value

Equipment (cost $215,000)

$167,000

$246,000

The equipment has a further 16 years of useful life.

All consolidation entries on 30 June 2,014 are shown below:

Dr. Retained earnings

$245,000

Dr. Share capital

$211,000

Dr. FVA

Dr. Goodwill

Cr. Investment in Jane Ltd

$814,000

Dr. Accumulated depreciation

215,000 - 167,000

Dr.(or Cr.) Equipment

Cr. FVA

( 246,000 - 167,000 ) x 70%

Cr. DTL

( 246,000 - 167,000 ) x 30%

Dr. Retained earnings

xxx

Dr. Depreciation expense

( 246,000 - 167,000 ) / 16

Cr. Accumulated depreciation

yyy

Dr. DTL

zzz

Cr. Income tax expense

( 246,000 - 167,000 ) x 30% / 16

Cr. Retained earnings

aaa

Complete the consolidation journals above and enter the amount of aaa (retained earnings)