On 1 July 2016 Blanka Lid acquired a 25% interest in Sagat Lid for consideration of $90,000. At that date the equity of Sagat Lid consisted of: Share Capital 180 000 Retained Earnings 65 000 Asset Revaluation Surplus 30 000 275 000 All assets and liabilities of Sagat Ltd are recorded at fair value except for inventory which was recorded at $7,000 below its fair value. This entire inventory was sold to external parties by December 2016. The following amounts represent the profit/(loss), dividends paid and asset revaluation surplus (ARS) balance by Sagat Lid since acquisition: Year ending Year ending 30/6/2017 30/6/2018 S $ Profit /(Loss) after tax 30 000 (18 000) Dividend paid 8 000 2 000 ARS Balance 33 000 40 000 On 1 January 2017, Blanka Lid sold an item of equipment to Sagat Lid for $25,000. The equipment originally cost Blanka Lid $28,000 and had a carrying amount at the time of sale of $19,000. The equipment has a further 4-year life. Both companies use the straight line method of depreciation. Tax rate is 30%. Required: Prepare the acquisition analysis and the equity accounting journals to account for the investment in Sagat Lid in accordance with AASB 128. Assume Blanka Ltd prepares consolidated financial statements as at 30 June 2018. (10 marks)