On 1 July 2014, Tamara Ltd had acquired all of the share capital of Jane Ltd for $165,000. At that date, the equity of Jane Ltd included:

	Jane Ltd
Share capital	$120,000
Retained earnings	10,000
Share capital	10,000

At date of acquisition all the identifiable assets and liabilities of Jane Ltd were recorded at fair value except for:

	Carrying Amount	Fair value
Plant and equipment (cost $80,000)	$60,000	$64,000
Land	90,000	105,000
Motor vehicle (cost $28,000)	22,000	25,000

Financial information for Tamara Ltd and its subsidiary Jane Ltd for the year ended 30 June 2017 is shown below:

	TamaraLtd	Jane Ltd
			Sales revenue	$340,000	$262,000
Proceeds from sale of vehicle	-	20,000
Proceeds from sale of equipment	-	42,000
Rental income	65,000	-
Dividend revenue	6,500	-
Total revenue	411,500	324,000
Cost of sales	160,000	120,000
Other expenses	115,000	95,000
Carrying amount of vehicle sold	-	16,000
Carrying amount of equipment sold	-	49,000
Total expenses	275,000	280,000
Profit before tax	136,500	44,000
Income tax expense	32,000	7,900
Profit after tax	104,500	36,100
Retained earnings 1 July 2016	31,500	74,500
Total available for appropriation	136,000	110,600
Less: Interim dividend paid	9,000	4,500
Less: Final dividend declared	8,000	2,000
Retained earnings 30 June 2017	119,000	104,100

	Tamara Ltd	Jane Ltd
			Assets:
Deferred tax asset	$4,600	$2,290
Receivables	65,000	13,100
Inventory	73,500	8,200
Land	366,000	140,000
Plant and equipment	245,000	185,000
Less: accumulated depreciation (Equipment)	(56,000)	(54,000)
Motor vehicles	70,000	69,000
Less: accumulated depreciation (Motor vehicle)	(20,000)	(14,000)
Investment in Jane Ltd	165,000	-
Total assets	913,100	349,590
Liabilities:
Dividends payable	9,000	2,000
Provisions	5,700	8,790
Current tax liability	28,000	4,200
Deferred tax liability	6,400	1,500
Other liabilities	389,000	94,000
Total liabilities	438,100	110,490
Net assets	475,000	239,100
Equity:
Share capital	300,000	120,000
General reserve	56,000	15,000
Retained earnings 30 June 2017	119,000	104,100
Total equity	475,000	239,100

Additional information:

(a) The Plant and equipment revalued on consolidation had a further 4 year life.

(b) The motor vehicle that was revalued on consolidation was sold to an external party on 1 January 2016 for $20,000. (c) Goodwill arose on consolidation and was tested annually for impairment. Goodwill was impaired by $2,000 during the year ended 30 June 2016, and by a further $1,500 during the year ended 30 June 2017.

(d) In January 2017, Jane Ltd paid a $4,500 interim dividend. (e) During June 2017, Jane Ltd declared a $2,000 dividend. The dividend was paid in August 2017. (f) All dividends declared by Jane Ltd have been from post-acquisition profits. Shareholder approval is not required in relation to dividends.

(g) Tamara Ltd has spare office space which it rents out to other businesses. During this year part of this space was rented out to Jane Ltd for $12,000. (h) Included in Janes inventory on 1 July 2016, was an amount of inventory worth $3,000, which had been transferred from Tamara Ltd in the previous financial year. This inventory originally cost Tamara Ltd $2,100.

(i) On 1 January 2017 Jane Ltd sold inventory to Tamara Ltd for $12,000, which was sold at cost plus 25%. Tamara Ltd decided to use this as equipment with a useful life of 4 years.

(j) On 1 July 2016, Jane Ltd sold some equipment to Tamara Ltd for $42,000. This item had a carrying amount at time of sale to Tamara Ltd of $49,000. Both entities use a 8% per year on cost depreciation rate for this item.

(k) The tax rate is 30%.

Required:

1. Prepare an acquisition analysis at the date of acquisition.

2. Prepare the consolidation journal entries for Tamara Ltd at 1 July 2014, immediately after acquisition.

3. Prepare the consolidation journal entries for Tamara Ltd as at 30 June 2017.