Question 7 [Total: 23 marks] - b+c The financial year of Peacock Ltd and Dove Ltd started on 1 July of each year and ended on 30 June of the following year. On 1 July 2020 Peacock Ltd acquired a 100 percent (100%) interest in Dove Ltd. The following information relates to the financial year ended 30 June 2021. The tax rate is 30 percent (30%). On 1 July 2020 Peacock Ltd sold an excavator to Dove Ltd for $2 600 000for cash. At the time of sales, the purchase price and accumulated depreciation of the excavator in Peacock Ltd's accounts were $3 000 000 an $1 200 000 respectively. The excavator is assessed as having a remaining useful life of five years. The Group has a policy of measuring property, plant, and excavator using the 'cost model'. The group uses the straight- line method of depreciation. Dove Ltd sold $120 000 of inventory to Peacock Ltd. The inventory cost Little Ltd $90 000 to produce the opening inventory of Peacock Ltd on 1 July 2020 including inventory acquired from Dove Ltd for $18 000 that cost Dove Ltd $14 000 to produce. The closing inventory of Peacock Ltd includes inventory acquired from Dove Ltd at a cost of $40 000, which cost Dove Ltd $30 000 to produce. Required b) Provide all journal entries related to the intragroup sales of inventory. (10 marks) c) When we are preparing consolidated financial statements, will the financial statements of the parent entity. or the subsidiary companies, at the beginning of the financial period reflect prior period consolidation adjustments? Justify your answer. (4 marks)