Q9 Investments in Associates 8 Points The following information is relevant to questions 9.1 and 9.2 On 1 July 2019, Amlee Ltd (Amlee) acquired 25% of the shares in Bingo Ltd (Bingo) for $200 000 cash. Amlee has significant influence over Bingo. At that date the identifiable assets and liabilities of Bingo were recorded at fair value. The equity of Bingo at that date consisted of: $ 500 000 Share Capital Reserves Retained Earnings 100 000 200 000 During the year ended 30 June 2020 Bingo reported a net profit of $80 000 for the year and declared and paid dividends of $60 000 on 30 June 2020. 0 0 During the year ended 30 June 2021 Bingo: reported a net profit of $100 000 declared and paid dividends of $80 000 on 30 June 2021. sold inventory to Amlee, resulting in an unrealised profit of $8 000 On 1 July 2017 Bingo sold equipment to Amlee, recording again on sale of $40 000. The expected remaining useful life of the equipment at date of sale was 20 years. At 30 June 2021 Bingo revalued land upwards by $80 000 (subject to tax). 0 0 Amlee is a parent entity and prepares consolidated financial statements. The company tax rate is 30%. Q9.1 4 Points Calculate Amlee's share of Bingo's profit for the year ended 30 June 2021 in accordance with AASB 128 Investments in Associates and Joint Ventures. Show your workings. Q9.2 4 Points Prepare all the consolidation entries that would be required by Amlee for the year ended 30 June 2021 to account for the investment in Bingo in the consolidated financial statements