On 1 July 2021, David Ltd acquired a 35% interest in May Ltd for consideration of $174,000. At that date the equity of May Ltd consisted of: Share Capital Retained Earnings 348,000 121,800 Asset Revaluation Surplus 52,200 522,000 All assets and liabilities of May Ltd are recorded at fair value except for inventory which was recorded at $13,920 below its fair value. This inventory was sold to external parties on 1 February 2022. The following amounts represent the profit/(loss), dividends paid and asset revaluation surplus (ARS) balance by May Ltd since acquisition: Year ending 30 June Year ending 30 June 2023 2022 Profit (Loss) after tax 52,200 -34,800 Dividend paid 13,920 10,440 ARS balance 76,560 62,640 On 1 January 2023, May Ltd sold an item of Equipment to David Ltd for $55,680. The Equipment originally cost May Ltd $66,120 and had a carrying amount at the time of sale of $40,020. Both companies apply a 20% straight-line method of depreciation. Tax rate is 30%. Required: a) Prepare the equity accounting journals to account for the Investment in May Ltd in accordance with AASB 128 as of 30 June 2023. Assume David Ltd prepares consolidated financial statements and show all workings. (8 marks) b) Calculate the carrying amount of the investment of May Ltd disclosed in the consolidated financial statements as of 30 June 2023. Show your workings. (2 marks)