On 1 July 2020, Rina Ltd acquired all the share capital of Tina Ltd for $944,000. At that date, Tina Ltds equity consisted of: Share capital $600,000, General Reserve $192,000 and Retained earnings $80,560. At 1 July 2020, all the identifiable assets and liabilities of Tina Ltd were recorded at fair value. Both companies employ the perpetual inventory system. Financial information for Rina and Tina Ltd for the year ended 30 June 2021 is presented below:

Financial statements Rina Ltd Tina Ltd Sales revenue 2,392,000 1,856,000 Cost of sales 1,776,000 1,340,000 Wages and salaries 115,000 124,000 Depreciation 10,400 9,600 Other expenses 8,000 - Total expenses 1,909,400 1,473,600 482,600 382,400 Proceeds from sale of equipment 12,000 - Carrying amount of equipment sold 14,000 - Gain(loss) -2,000 - Profit before income tax 480,600 382,400 Income tax expense 192,240 176,960 Profit 288,360 205,440 Retained earnings (1/7/2020) 201,640 80,560 490,000 286,000 Dividend paid 100,000 - Retained earnings (30/6/2021) 390,000 286,000 Share capital 1,000,000 600,000 General reserve 280,000 192,000 Deferred tax liability 104,000 86,000 1,774,000 1,164,000 Investment in subsidiary Ltd 944,000 - Cash 160,000 86,000 Inventory 336,000 72,000 Other current assets 50,000 736,000 Land 200,000 240,000 Equipment 104,000 56,000 Accumulated depreciation -20,000 -26,000 1,774,000 1,164,000

Additional information: (a) On 1 January 2021, Tina Ltd sold inventory costing $60,000 to Rina Ltd for $100,000. Half of this inventory was still on hand with Rina Ltd at 30 June 2021. (b) On 31 March 2021, Rina Ltd sold equipment to Tina Ltd for $12,000 which was $2,000 below its carrying amount to Rina Ltd at that date. Tina Ltd charged deprecation at the rate of 10% p.a. on this time. (c) In the 2021 period, Rina Ltd sold a block of land to Tina Ltd at $40,000 above cost. The land is still held by Tina Ltd. (d) There was a profit in the beginning inventory of Rina Ltd of $12,000 on goods acquired from Tina Ltd in the previous period. (e) The tax is 30 per cent.

Required: (a) Calculate goodwill on the date of acquisition; 1 Mark (b) Prepare journal entries for consolidation worksheet; 6 Marks (c) Using excel spreadsheet prepare consolidation worksheet for Rina Ltd for the year ended 30 June 2021. 13.5 Marks (d) Using excel spreadsheet prepare consolidated financial statements for the year ended 30 June 2021.