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 $112,000.

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:

1. 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.
2. 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.
3. 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.
4. There was a profit in the beginning inventory of Rina Ltd of $12,000 on goods acquired from Tina Ltd in the previous period.
5. The tax is 30 per cent.

Required:

1. Calculate goodwill on the date of acquisition; 1 Mark
2. Prepare journal entries for consolidation worksheet; 6 Marks
3. Using excel spreadsheet prepare consolidation worksheet for Rina Ltd for the year ended 30 June 2021. 13.5 Marks
4. Using excel spreadsheet prepare consolidated financial statements for the year ended 30 June 2021. 9.5 Marks