On 1 July 2018, Priscilla Ltd acquired all the issued shares of Lisa Marie Ltd. The consideration for the acquisition was $30000 in cash and 20000 shares in Priscilla Ltd, valued at $3 per share. At this date, the equity of Lisa Marie Ltd consisted of $66000 share capital and $6000 retained earnings. At 1 July 2018, all the identifiable assets and liabilities of Lisa Marie Ltd were recorded at amounts equal to their fair values except for:

	Carrying amount	Fair value
Plant (cost $150000)	$ 120000	$ 123000
Patents	90000	105 000
Inventories	18 000	22 500

The plant was considered to have a further 5-year life. The patents were sold for $120000 to an external entity on 18 August 2018. The inventories were all sold by 30 June 2019.

Additional information

(a) Priscilla Ltd sells certain raw materials to Lisa Marie Ltd to be used in its manufacturing process. At 1 July 2021, Lisa Marie Ltd held inventories sold to it by Priscilla Ltd in the previous year at a profit of $600. During the 2021-22 year, Priscilla Ltd sold inventories to Lisa Marie Ltd for $21 000. None of the inventories are on hand at 30 June 2022.

(b) Lisa Marie Ltd also sells items of inventories to Priscilla Ltd. During the 2021-22 year, Lisa Marie Ltd sold goods to Priscilla Ltd for $4500. At 30 June 2022, inventories which had been sold to Priscilla Ltd at a profit of $300 are still on hand in Priscilla Ltd's inventories.

(c) On 1 July 2021, Lisa Marie Ltd sold an item of plant to Priscilla Ltd for $15000 that had cost Lisa Marie Ltd $14 000 on the same date. This type of plant is depreciated at 10% p.a. on cost.

(d) On 1 January 2021, Priscilla Ltd sold inventories to Lisa Marie Ltd for $18000. The inventories had cost Priscilla Ltd $16000. This item was classified by Lisa Marie Ltd as plant and depreciated at 20% p.a.

(e) On 1 March 2022, Lisa Marie Ltd sold an item of plant to Priscilla Ltd. Whereas Lisa Marie Ltd classified this as plant, Priscilla Ltd classified it as inventories. The sales price was $9000, which included a profit to Lisa Marie Ltd of $1500. Priscilla Ltd sold this asset to another entity on 31 March 2022 for $9900.

(f) The tax rate is 30%.

The following financial information was provided by the two companies for 30 June 2022: Priscilla Ltd Lisa Marie Ltd

		Priscilla Ltd		Lisa Marie Ltd
		DR	CR	DR	CR
Sales revenue			64 500		78 000
Cost of sales		30 900		46 350
Trading expense		4 800		9 000
office expenses		7 950		4 050
Depreciation expenses		1 800		3 900
Proceeds on sale of plant			9 000		15 000
Carrying amount of plant sold		7 500		14 000
Income tax expense		11 100		7 300
Share capital			96 000		66 000
Retained earnings (1/7/21)			48 000		31 500
Current liabilities			21 100		10 500
Deferred tax liability			11 000		15000
plant		57 000		107 250
Accumulated depreciation - plant			18 300		33 450
Intangibles		12 000		11 100
Deferred tax assets		8 100		9 450
Shares in Lisa Marie Ltd		90 000		0
Inventories		28 500		24 600
Receivables		8 250		12 450
		267900	267900	249450	249450

Required

1. Calculate acquisition analysis

2. Prepare the consolidation journal entries for 30 June 2022

3. Complete the consolidated worksheet

4. Prepare the consolidated financial statements at 30 June