Spade Ltd, a parent entity, acquired a voting interest of 40% in Club Ltd on 1 July 2017 for a cash consideration of $2,400,000. The acquisition gave Spade Ltd significant influence over Club Ltd's operations. Club Ltd's shareholders' equity items at the time of acquisition were as follows: Additional Information: a) On 1 July 2017, the carrying value of Club Ltd's plant and equipment was $1,500,000, while the fair value was $2,000,000, and the remaining useful life for assets in this class of assets was five years. At the date of acquisition, all other assets and assumed liabilities were recognised at their fair value in Club Ltd's financial statements. Club Ltd and Spade Ltd use straight-line depreciation for plant and equipment. b) For the year ended 30 June 2018, Club Ltd recorded an after-tax profit of $450,000, out of which dividends of $150,000 were proposed and paid on 30 June 2018. c) On 30 June 2018, Club Ltd revalued its land upwards by $200,000. The amount taken to revaluation surplus was $140,000. No further revaluations of land have taken place in year ended 30 June 2019. d) For the year ended 30 June 2019, Club Ltd recorded a profit after income tax of $320,000. e) Club Ltd proposed and paid a dividend of $100,000 on 30 June 2019. f) Club Ltd did not record a profit or loss from discontinuing operations in either 2018 or 2019. g) During the year ended 30 June 2019 , the following inter-entity inventory transactions occurred: - Club Ltd sold inventory to Spade Ltd. The inventory cost Club Ltd $40,000, and sold to Spade Ltd for $60,000;50% of this inventory was still on hand in Spade Ltd's closing inventory at 30 June 2019. - Spade Ltd sold inventory to Club Ltd. The inventory cost Spade Ltd $60,000, and sold to Club Ltd for $90,000. 20% of this inventory was still on hand in Club Ltd's closing inventory at 30 June 2019. h) Spade Ltd recognises dividends from associates as revenue when they are declared. i) Spade Ltd has elected to use the cost method to measure investments in associates and joint ventures in its separate financial statements. j) Spade Ltd applies the equity method of accounting for its associates in its consolidated financial statements. k) Spade Ltd's investment in Club Ltd is subject to an annual impairment test. Impairment losses are not required to be recognised for each of the years ended 30 June 2018 and 2019 in Spade Ltd's separate financial statements or consolidated financial statements. 1) The tax rate is 30% for all accounting periods. Required: Prepare the equity adjusting entries in Spade Ltd's consolidated financial statements to apply the equity accounting method to its investment in Club Ltd for the year ended 30 June 2019 in accordance with AASB 128. Show all narrations and working. Spade Ltd, a parent entity, acquired a voting interest of 40% in Club Ltd on 1 July 2017 for a cash consideration of $2,400,000. The acquisition gave Spade Ltd significant influence over Club Ltd's operations. Club Ltd's shareholders' equity items at the time of acquisition were as follows: Additional Information: a) On 1 July 2017, the carrying value of Club Ltd's plant and equipment was $1,500,000, while the fair value was $2,000,000, and the remaining useful life for assets in this class of assets was five years. At the date of acquisition, all other assets and assumed liabilities were recognised at their fair value in Club Ltd's financial statements. Club Ltd and Spade Ltd use straight-line depreciation for plant and equipment. b) For the year ended 30 June 2018, Club Ltd recorded an after-tax profit of $450,000, out of which dividends of $150,000 were proposed and paid on 30 June 2018. c) On 30 June 2018, Club Ltd revalued its land upwards by $200,000. The amount taken to revaluation surplus was $140,000. No further revaluations of land have taken place in year ended 30 June 2019. d) For the year ended 30 June 2019, Club Ltd recorded a profit after income tax of $320,000. e) Club Ltd proposed and paid a dividend of $100,000 on 30 June 2019. f) Club Ltd did not record a profit or loss from discontinuing operations in either 2018 or 2019. g) During the year ended 30 June 2019 , the following inter-entity inventory transactions occurred: - Club Ltd sold inventory to Spade Ltd. The inventory cost Club Ltd $40,000, and sold to Spade Ltd for $60,000;50% of this inventory was still on hand in Spade Ltd's closing inventory at 30 June 2019. - Spade Ltd sold inventory to Club Ltd. The inventory cost Spade Ltd $60,000, and sold to Club Ltd for $90,000. 20% of this inventory was still on hand in Club Ltd's closing inventory at 30 June 2019. h) Spade Ltd recognises dividends from associates as revenue when they are declared. i) Spade Ltd has elected to use the cost method to measure investments in associates and joint ventures in its separate financial statements. j) Spade Ltd applies the equity method of accounting for its associates in its consolidated financial statements. k) Spade Ltd's investment in Club Ltd is subject to an annual impairment test. Impairment losses are not required to be recognised for each of the years ended 30 June 2018 and 2019 in Spade Ltd's separate financial statements or consolidated financial statements. 1) The tax rate is 30% for all accounting periods. Required: Prepare the equity adjusting entries in Spade Ltd's consolidated financial statements to apply the equity accounting method to its investment in Club Ltd for the year ended 30 June 2019 in accordance with AASB 128. Show all narrations and working