On 1 July 2019 Tina Ltd acquired a 35% interest in Tom Ltd for consideration of $120,000. At that date the equity of Tom Ltd consisted of:

Share Capital 240,000

Retained Earnings 84,000

Asset Revaluation Surplus 36,000

360,000

All assets and liabilities of Tom Ltd are recorded at fair value except for inventory which was recorded at $9,600 below its fair value. This entire inventory was sold to external parties in January 2020.

The following amounts represent the profit/(loss), dividends paid and asset revaluation surplus (ARS) balance by Tom Ltd since acquisition:

	Year ending 30/6/2021 $	Year ending 30/6/2020 $
Profit /(Loss) after tax	36,000	(24,000)
Dividend paid	9,600	7,200
ARS Balance	52,800	43,200

On 1 Oct 2019, Tom Ltd sold an item of equipment to Tina Ltd for $38,400. The equipment originally cost Tom Ltd $45,600 and had a carrying amount at the time of sale of $27,600. Both companies apply a 20% straight-line method of depreciation.

The tax rate is 30%.

Required:

a) Prepare the equity accounting journals to account for the Investment in Tom Ltd in accordance with AASB 128 as of 30 June 2021. Assume Tina Ltd prepares consolidated financial statements and show all workings.

b) Calculate the carrying amount of the Investment in Tom Ltd disclosed in the consolidated financial statements as of 30 June 2021. Show your workings.