On1July2013MarioLimitedacquiredallofthesharecapitalofLuigiLimitedforaconsiderationof$500,000cash. AtthedateofacquisitiontheequityofLuigiLtdconsistedof: ShareCapital 340,000GeneralReserve 76,000RetainedEarnings 45,000

Atthatdatealltheidentifiableassetsandliabilitieswererecordedatfairvaluewiththeexceptiono

ASSET BookValue MarketValue

Inventory 18,00021,000

Land 33,00038,000

Plant 60,000

(lessaccumulateddepreciation) 14,000

48,100 46,000

AcountsReceivable 27,00021,000

Forthenetassetsatacquisition: Theinventorywasallsoldby30/6/14.Theaccountsreceivablewerecollectedby30/6/14for$21,000. Thelandwassoldon30/12/16for$45,000.Theremainingusefullifeoftheplantis7years.Theplantwasonhandstillat30/6/17.

InformationfromthetrialbalancesofMarioLtdandLuigiLtdat30June2017ispresentedoverleaf.

AdditionalInformation 1.On1Jan2017LuigiLtdsoldinventorytoMarioLtdcosting$27,000for$38,000.One quarterofthisinventorywasstillonhandasat30/6/17. 2.On1Jan2016LuigiLtdsoldinventorycosting$4700toMarioLtdfor$8000.MarioLtdtreatstheitemasequipmentanddepreciatesitat10%perannum. 3.On1July2016LuigisoldplanttoMariofor$7,000.TheplanthadcostLuigi$8,000on 1July2014anditwasbeingdepreciatedat10%perannum.Marioregardstheplantasinventory. Theinventorywasallsoldby30thJuly2016. 4.At1July2016LuigiLtdheldinventorythatithadpurchasedfromMarioLtdon1June2016ataprofitof$8000.Allinventorywassoldby30June2017 5.MarioLtdaccruesdividendsfromLuigiLtdoncetheyaredeclared. 6.MarioLtdhasearned$1200ininterestrevenueinthe2017financialyearfromLuigiLtd. 7.MarioLtdhasearned$2400inservicerevenueinthe2017financialyearfromLuigiLtd. 8.Assumeataxrateof30%. Required: A.Preparetheacquisitionanalysisat1July2013

B.PreparetheBCVRandpreacquisitionjournalentriesat1July201

C.PreparetheBCVRandpreacquisitionjournalentriesat30June2017.

D.Preparetheconsolidationworksheetjournalentriestoeliminatetheeffectsofinterentitytransactionsasat30June2017. E.Preparetheconsolidationworksheetforthepreparationoftheconsolidatedfinancial