On 1 July 2019 Blue Ltd acquired 100% of the share capital (ex. div.) of Purple Ltd for $717,500. At that date, the relevant balances in the records of Purple Ltd were: $ Share capital 520,000 General reserve 32,500 Retained earnings 130,000 Dividend payable 16,250 At the date of acquisition all assets and liabilities of Tina Ltd were recorded in the accounting records at amounts equal to their fair values with the exception of the following assets: Carrying amount Fair value $ $ Machinery 76,375 100,750 Inventory 16,250 22,750 The cost of machine was $121,875 and had a further 5-year life as at the date of acquisition. Inventory at the acquisition date was sold in April 2020. Purple Ltd disclosed a contingent liability at the date of acquisition in relation to claims for damaged goods. Blue Ltd estimated a fair value of $26,000 on the claim. This claim was settled on 30 November 2022 for $14,625. Additional information: During the 2021-2022 financial year, Blue Ltd purchased inventory from Purple Ltd for $29,250. The cost of inventory to Purple Ltd was $21,125. Half of this inventory was sold by Blue Ltd to external parties by 30 June 2022. The balance was sold to external parties in December 2022. During the 2022-2023 financial year, Blue Ltd sold inventory to Purple Ltd for $43,680 at a mark-up of 40%. By 30 June 2023, Purple Ltd still held inventory that it had bought from Blue Ltd for $13,650. On 1 January 2021, Purple Ltd sold an item of plant to Blue Ltd for $65,000. The original cost of the plant to Purple Ltd was $84,500 and had a carrying amount at the time of sale of $52,000. The plant is considered to have a further 5 years of life as of 1 January 2021. On 1 January 2023, Blue Ltd acquired $81,250 of debentures previously issued by Purple Ltd. The debentures were acquired on the open market for $69,875. Interest on debentures is paid half-yearly. Outstanding interest has been paid by Purple Ltd on 30 June 2023. All transfers from retained earnings to the general reserve by Purple Ltd were from post-acquisition earnings. On realisation of the business combination valuation reserve, a transfer is made to retained earnings on consolidation. The tax rate is 30%. The financial statements of the two companies on 30 June 2023 are as follows: Blue Ltd Purple Ltd $ $ Revenues 1,381,250 893,750 Expenses (1,072,500) (682,500) Net profit before tax 308,750 211,250 Income tax expense (105,625) (78,000) Net profit after tax 203,125 133,250 Retained earnings 1 July 2022 260,000 195,000 463,125 328,250 Dividend paid (68,250) (29,250) Transfer to general reserve (26,000) (19,500) Retained earnings 30 June 2023 368,875 279,500 Share capital 812,500 520,000 General reserve 133,250 87,750 Accounts payable 73,125 32,500 6% debentures 146,250 Other liabilities 156,000 9,750 TOTAL EQUITY AND LIABILITIES 1,543,750 1,075,750 Cash 176,250 243,750 Accounts receivable 40,625 105,625 Prepayment 48,750 97,500 Inventory 105,625 146,250 Debentures in Purple Ltd 69,875 Investment in Purple Ltd 717,500 Non-current assets 385,125 482,625 TOTAL ASSETS 1,543,750 1,075,750 Required: Prepare the consolidation journal entries for the Blue Ltd group for the year ended 30 June 2023. Round all numbers to the nearest whole dollar. (20 marks)