On 1 July 2018 Becker Lid acquired a 30% interest in Lovren Ltd for consideration of $120,000. At that date the equity of Lovren Lid consisted of: Share Capital 200 000 Retained Earnings 70 000 Asset Revaluation Surplus. 30 000 300 000 All assets and liabilities of Loyrep Lid are recorded at fair value except for inventory which was recorded at $8,000 below its fair value. This entire inventory was sold to external parties by January 2019. The following amounts represent the profit/(loss), dividends paid and asset revaluation surplus (ARS) balance by Lovren Lid since acquisition: Year ending Year ending 30/6/2020 30/6/2019 Profit /(Loss) after tax 30 000 (20 000) Dividend paid 8 000 6 000 ARS Balance 44 000 36 000 On 1 January 2019, Becker Lid sold an item of equipment to Lovren Lid for $32,000. The equipment originally cost Becker Lid $38,000 and had a carrying amount at the time of sale of $23,000. The equipment has a further five (5) year life. Both companies use the straight line method of depreciation. Tax rate is 30%. Required: a) Prepare the equity accounting journals to account for the Investment in Lovren Ltd in accordance with AASB 128 as at 30 June 2020. Assume Becker Lid prepares consolidated financial statements and show all workings. (8 marks) b) Calculate the value of the investment of Lovren Lid disclosed in the consolidated financial statements as at 30 June 2020. Show your workings. (2 marks)