Prepare the consolidation journal entries to record the data adjustments for each of the following independent situations. Ignore tax in all cases and journal narrations are not required.

(a) Fair value of inventory is $4,000 higher than its carrying value at control date, 1 January 2017.

(b) The value of equipment is $15,000 higher than its carrying amount of $40,000 (cost 50,000 less accumulated depreciation $10,000) at control date of 1 January 2017. This asset is considered to have a useful life of five (5) years from 1 January 2017.The subsidiary adopts the cost model in its books.

Prepare the journal entry on the consolidation worksheet as at control date for the fair value adjustment and the depreciation data adjustment for both 31 December 2017 AND 31 December 2018, assuming the equipment is still on hand. Show all workings.

(c) The fair value of receivables is considered to be $4,000 lower than the carrying amount of receivables at control date of 1 January 2017. This adjustment should have been recorded in the books of the subsidiary.

(d) On 31 December 2018 the parent, transferred inventory to value of $8,200 (at cost) to the subsidiary who has not yet recorded this transactions in its books as the inventory is still in transit. This sale has been recorded by the parent was made on credit. Prepare data adjustment journal as at 31 December 2018.