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 105000 Inventories 18000 22500 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 202122 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 202122 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 Ltds 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 Dr Cr Dr Cr Sales revenue 64500 78000 Cost of sales 30900 46350 Trading expenses 4800 9000 Office expenses 7950 4050 Depreciation expenses 1800 3900 Proceeds on sale of plant 9000 15000 Carrying amount of plant sold 7500 14000 Income tax expense 11100 7300 Share capital 96000 66000 Retained earnings (1/7/21) 48000 31500 Current liabilities 21100 10500 Deferred tax liability 11000 15000 Plant 57000 107250 Accumulated depreciation - plant 18300 33450 Intangibles 12000 11100 Deferred tax assets 8100 9450 Shares in Lisa Marie Ltd 90000 0 Inventories 28500 24600 Receivables 8250 12450 267900 267900 249450 249450

Required 1. Calculate acquisition analysis as at 1 July 2018 2. Prepare the consolidation journal entries for 30 June 2022 3. Complete the consolidated worksheet for 30 June 2022 4. Prepare the consolidated financial statements at 30 June 2022 5. Write a report to explain the consolidation process as per AASB10 for wholly owned entities and provide suitable explanations for intragroup adjustments (a) and (c) in additional information above.