On 30 June 2019, Stephen Ltd gained control of Hawking Ltd by purchasing all its share capital. On the control date, the fair values of Hawking Ltds following assets differed from their carrying amounts:

Carrying amount ($) Fair value ($)

Accounts receivable 95 000 90 000

Building 210 000 230 000

(cost=$250 000, with nil residual value)

Inventory 84 000 82 000

Also, Hawking Ltd in its own financial statements at 30 June 2019 disclosed a contingent liability relating to guarantees for loans. Stephen Ltd determined that this liability had a fair value of $7,000.

Additional information:

Hawking Ltd applied the cost model to buildings, and continued to do so after the control date. However, for group/consolidation purposes, revaluation to fair value is the model applied. The group and Hawking Ltd both apply straight-line depreciation to buildings. The above building had a further 5 years useful life at 30 June 2019.

None of the above inventory was sold to external parties in the year ended 30 June 2020.

REQUIRED Prepare journal entries for the required consolidation data adjustments on 30 June 2020. (8 marks)