Perth Ltd is a manufacturer of trendy blue jeans and Sydney Ltd is a manufacturer of shirts. In anticipation of high revenue growth rate of Sydney Ltd, on 1 January 2021, Perth Ltd acquired 70% of the shares of Sydney Ltd by paying $15,600 cash to Sydney Ltd. The fair value of the non-controlling interests was $6,200 on the acquisition date. The following reflects the financial position of both companies on 31 December 2021. Statement of Financial Position as at 31 December 2021 Assets Property, plant and equipment Investment in Sydney Ltd Inventories Account receivables Cash Perth Ltd $ Sydney Ltd $ 53,000 21,000 15,600 8,160 3,280 7,320 2,150 1,690 700 85,770 27,130 Equity and Liabilities Share capital 50,000 13,000 Retained earnings 28,000 7,900 Non-current liabilities 3,150 3,630 Current liabilities 4,620 2,600 85,770 27,130 Additional Information: 1) The equity balance of Sydney Ltd on the acquisition date consisted of share capital of $13,000 and retained earnings of $3,800. 2) The accountant of Perth Ltd found that, on 1 January 2021, there was an in-process research and development project undertaken by the Sydney Ltd and the cost incurred under this project was $4,000. This amount was recognized as an expense in the financial statement of Sydney Ltd. However, the accountant judged that this project had met the definition of an intangible asset. The remaining useful life of this intangible asset was 10 years from the acquisition date. 3) On the acquisition date, Perth Ltd asked a professional to revalue the net assets of Sydney Ltd. It was found that the fair value of the net assets was equal to their book value EXCEPT that there should be a fair value increase of the building by $6,000 and an impairment loss of the accounts receivable by $800. The remaining useful life of this building was 20 years from the acquisition date. 4) A few months before the acquisition, several workers of Sydney Ltd were injured owing to the unsafe working condition in one of the production lines. Accordingly, these workers took legal action against the company for claiming damages. As of 31 December 2020, the verdict for this legal case was still pending and the company's experienced lawyer opined that the outcome is not probable based on the following estimations: Probability Damages to be paid within 1 year Win the lawsuit 0.8 Lose the lawsuit 0.2 Nil $23,000 Therefore, on 31 December 2020, the above event was disclosed as a contingent liability in the notes to financial statements of Sydney Ltd. 5) The accounting policy of Perth Ltd requires that the measurement of NCI on acquisition date should be based on fair value approach. 6) Tax rate is 20%. Required: 1. Based on the relevant International Financial Reporting Standard, prepare the following consolidation journal entries for the year ended 31 December 2021. (Narratives are not required) CJE1: Eliminate Investment in Sydney Ltd