Question 4 Ibu Ltd owns 25% of the shares of its associate, Anak Ltd. At the acquisition date, 1 July 2019, there were no differences between the fair values and the carrying amounts of the identifiable assets and liabilities of Anak Ltd. The equity section of Anak Ltd at the date of acquisition is as follows: Share capital General reserve Retained earnings $100,000 15,000 175,900 For the year ended 30 June 2021, Anak Ltd recorded a profit of $94,000. During this period, Anak Ltd paid an interim dividend of $14,000. The following transactions have occurred between Ibu Ltd and Anak Ltd: 0 On 1 January 2021, Anak Ltd sold machinery to Ibu Ltd recording a profit of $30,000. Ibu Ltd applies a 10% p.a. straight-line method of depreciation. On 31 March 2021, Anak Ltd sold inventory to Ibu Ltd for $4,000. The cost of this inventory to Anak Ltd was $3,700. A quarter of this inventory was on hand at 30 June 2021. In May 2020, Ibu Ltd sold inventory to Anak Ltd recording a profit of $550 on the sale. This inventory was sold by Anak Ltd to Cousin Ltd in June 2021. (iv) The balance of Retained earnings at 30 June 2021 is $323,900. Required Prepare the journal entries in the records of Ibu Ltd for the year ended 30 June 2021 in relation to its investment in Anak Ltd in accordance to IAS 28 /AASB 128 Investment in Associates. Ibu Ltd prepares consolidated financial statements. The tax rate is 30%. 15 marks