On 1 July 2013 Burnie Ltd acquired 100% of the issued capital of Smithton Ltd for $4 000 000. The following balance sheet information concerning Smithton Ltd was available:

Additional information

	$
Share capital	2 500 000
Retained earnings	800 000

a) At 1 July 2013, the fair value of equipment owned by Smithton Ltd was $840 000 more than its carrying amount. The equipment had not been re-valued in the books of Smithton Ltd prior to consolidation. The equipment cost $3 200 000 two years ago and recorded accumulated depreciation was $800 000. The equipment had a remaining life of six years on 1 July 2013. All other assets and liabilities of Smithton Ltd were recorded at fair value.

b) Inventory sales of $600 000 was made by Burnie Ltd to Smithton Ltd, on 31 May 2017, cost of inventory $250 000. Smithton Ltd had not paid Burnie Ltd for these goods at 30 June 2017. Smithton Ltd sold the goods to an external party for $700 000 in August 2017.

c) On 1 July 2014, Smithton Ltd sold equipment, purchased on 1 July 2013, to Burnie Ltd for $900 000. At date of sale the carrying amount of that asset was cost of $1 000 000 less accumulated depreciation of $200 000. Burnie Ltd depreciated the asset over its remaining life of four years.

d) On 31 December 2015, Burnie Ltd loaned $3 000 000 to Smithton Ltd, repayable on 31 December 2019. Interest at the market rate of 8% per annum was payable annually in arrears on 31 December each year over the term of the loan.

e) In May 2016, Smithton Ltd sold inventory to Burnie Ltd for $500 000. The inventory had cost Smithton Ltd $260 000. The goods were sold by Burnie Ltd in July 2016.

f) Burnie Ltd charges Smithton Ltd an annual management fee of $150 000. The fee is paid on 30 June each year.

Other information:

All companies in the group recognised dividend revenue on the accruals basis and used a perpetual inventory system. The group measures property, plant and equipment using the cost model.

The tax rate over the relevant period was 30%. Deferred tax liabilities and deferred tax assets are classified as other current liabilities and other current assets respectively.

Required

For the year ended 30 June 2017:

1. Prepare the consolidation elimination journal entries required for the above intra-group transactions.

2. Complete the consolidation worksheet.