On 1 July 2020, Century Ltd acquired 100% of the share capital of Decade Ltd for $260 000. At this date, the equity of Decade Ltd consisted of

Share capital--100 000 shares $150 000

General reserve 30 000

Retained earnings 20 000

At 1 July 2020, all the identifiable assets and liabilities of Decade Ltd were recorded at fair value except for the following assets:

	Carrying amount	Fair value
Plant cost	$90 000	$100 000
Land	80 000	120 000

The plant had a further 5-year life, with benefits expected to be received evenly over that period.

Financial information for these two companies as at 30 June 2021 included:

		Century Ltd	Decade Ltd
Profit before tax		140 000	120 000
Income tax expense		30 000	40 000
Profit after tax		110 000	80 000
Retained earnings (1/7/20)		80 000	20 000
		190 000	100 000
Interim dividend paid		20 000	15 000
Dividend declared		25 000	20 000
		45 000	35 000
Retained earnings (30/6/21)		$145 000	$65 000

There was an impairment loss of 10% on goodwill during the year ended 30 June, 2021 Assume a tax rate of 30%,

Required:

1. Prepare the acquisition analysis at 1 July 2020. (4 marks)
2. Prepare the consolidation worksheet entries for the year ended 30 June, 2021