On 1 July 2018, Sunflower Ltd acquired 90% of the share capital to gain control of Palm Ltd.

The following intra-group transactions occurred during the year ending 30 June 2019.

(i) During the 2018 - 2019 period, Sunflower Ltd sold inventory to Palm Ltd for $1600,000.

Sunflower Ltd purchased this inventory at $1000,000. By 30 June 2019, Palm Ltd has sold 70%

of that inventory to third party.

(ii) Palm Ltd declared a final dividend of $1300, 000 from current year's profits.

(iii) Palm Ltd paid Sunflower Ltd, a fee for administrative services they provided of $40,000.

(iv) Palm Ltd has an intra-group loan with Sunflower Ltd. Sunflower Ltd provided a loan of

$10,000,000. The loan charges 4% interest annually. One half of the interest for the

current year remains unpaid at 30 June 2019.

(v) Palm Ltd sold a land to Sunflower Ltd for $560000. The land was purchased by Palm Ltd

at $ 300000.

Required:

(a) Prepare the journal entries required to eliminate the intra-group transactions above.