on 1 July 2020, Vincent Ltd acquires 20 percent of the shares of Valak Ltd by issuing 10,000 shares at $2.60 per share. During the financial year ending 30 June 2021, Valak Ltd makes an after-tax profit of $50,000 and provides for a dividend of $20,000. This profit includes the following transactions:

1.Valak Ltd sells inventory to Choco Ltd for a profit of $9,000 but at the end of the year, 60% of inventory is still on hand.

2.Valak Ltd also sells office furniture to Vanilla Ltd for a profit of $7,000 on the time of disposal.

3.The company tax rate is assumed to be 30%.

(Note: Vincent Ltd also acquires 30% shares of Choco Ltd - another associate of Vincent Ltd and Vanilla Ltd is a 100% owned subsidiary of Vincent Ltd).

Required:

i.Calculate the amount of Vincent Ltd's share of Valak Ltd's adjusted profit after adjusting the unrealised profit from selling inventory and office furniture for the year ended 30 June 2021. .

ii.Prepare journal entries for Vincent Ltd's interest in the associate Valak Ltd for the year ended 30 June 2021 as required by AASB128.