On 1 July 2018, Intelligent Ltd acquired all the issued shares (ex div.) of Endeavour Ltd. Intelligent Ltd and Endeavour Ltd became Intelligent Consolidated Group, who mainly provide catering services to Australian major airlines. At this date, the financial statements of Endeavour Ltd showed the following balances in its accounts:

Share capital	$175000
General reserve	40000
Retained earnings	80000
Dividend payable	20000
Goodwill	10000

At 1 July 2018, all the identifiable assets and liabilities of Endeavour Ltd were recorded at amounts equal to their fair values. Consideration transferred is $317000

The financial statements of Intelligent Ltd and Endeavour Ltd at 30 June 2019 contained the following information:

	Intelligent Ltd ($)	Endeavour Ltd ($)
Profit for the period	35000	25000
Retained earnings (1/7/18)	90000	80000
Transfer from general reserve	0	10000
Retained earnings (30/6/19)	125000	115000
Share capital	700000	175000
General reserve	92000	30000
Total equity	917000	320000
Provisions	30000	25000
Payables	15000	25000
Long-term loans	50000	110000
Total liabilities	95000	160000
Total equity and liabilities	1012000	480000
Plant	600000	820000
Accumulated depreciation	(295000)	(650000)
Fixtures	300000	120000
Accumulated depreciation	(180000)	(80000)
Land	200000	140000
Brands	50000	55000
Shares in Endeavour Ltd	272000	0
Goodwill	0	10000
Inventory	45000	45000
Cash	5000	7000
Receivables	15000	13000
Total assets	1012000	480000

Required

1. Pls also note the financial statements of Intelligent Ltd and Endeavour Ltd at 30 June 2019 are drafted financial statements. Potential errors could be found out by auditors. Students are required to prepare the drafted consolidated financial statements at 30 June 2019.

2. Explain the difference between ex div and cu div acquisitions - the effects on the acquisition journal entry in the records of the parent under each circumstance

3. Why is it necessary to make consolidation adjustments for intragroup transactions? In making consolidation worksheet adjustments, sometimes tax-effect entries are made, why? Give an example about the tax-effect of intragroup transactions in catering services for airline industries.

4. In March 2020, due to Corona Virus Pandemic, Intelligent consolidated group is likely to wind up, discuss the two possible approaches of winding up companies.

5. In Apr 2020, Intelligent consolidated group went into liquidation. Discuss the 5 main tasks relating to accounting for liquidation. What are the three main accounts used in accounting for liquidation. Any suggestions on making liquidation process more efficient?