Prepare all consolidation/elimination journals for the year ending 30 June 2017. Narrations required

Full Ltd acquired 80% of the share capital of Partial Ltd on 1 July 2011 for $350 000, when all assets of Partial Ltd were fairly valued.

Additional information:

1. Share capital and reserves are:

At 1 July 2011 At 1 July 2016

Share Capital $200 000 $200 000

Retained earnings $175 000 $425 000

No intragroup transactions took place between 1 July 2011 and 30 June 2015.

2. The only intragroup transaction for the year ending 30 June 2016, was Full Ltd sold inventory to Partial Ltd for a price of $120,000. The inventory cost Full Ltd $90,000 to produce. At 30 June 2016, Partial Ltd still had 75% of this inventory on hand, but by 30 June 2017, all of this inventory had been sold to external parties.

3. During the financial year ending 30 June 2017, Partial Ltd sold inventory to Full Ltd for a price of $240,000. The inventory cost Partial Ltd $160000 to produce. By 30 June 2017, Full Ltd had sold 40% of this inventory to external parties.