SQ 6-5 X Ltd purchased all the shares in Stryker Ltd on 1 July 2011 for $370,000. 1. At 1 July 2011, Stryker Ltd's net assets were considered to be fairly valued, except for plant (with a cost of $245 000 and accumulated depreciation $44 000) which had a fair value of $225 000 and a remaining useful life of 8 years. The Trial Balance of Stryker Ltd at 1 July 2011 was: Debit Credit Bank Inventories 13,000 98,000 Plant (net) 201,000 Land & Buildings (net) 120,000 Accounts Payable 72,000 Share capital 280,000 Retained Earnings 80,000 432.000 432,000 2. Intercompany sales for the year ended 30 June 2018 were: X Ltd sold to Stryker Ltd $90 000, originally cost X Ltd $75 000 Stryker sold to X Ltd $70 000, originally cost Stryker Ltd $50 000 3. At 30 June 2018, X Ltd has sold all inventory outside the group which it purchased from Stryker Ltd. However, Stryker Ltd still has 20% of the inventory it purchased from X Ltd on hand. 4. Inventories on hand from intercompany sales at the start of the year, 1.7.17, were: X Ltd purchased from Stryker Ltd $9 000, originally cost Stryker Ltd $5 000 Stryker Ltd purchased from X Ltd $10,500, originally cost X Ltd $8 000 5. On 31 December 2017 Stryker Ltd paid a dividend of $10,000. The company declared, but had not yet paid, a further dividend of $35,000 on 30 June 2018. 6. On 31 March 2017, X Ltd paid a dividend of $18,000. The company declared, but had not yet paid, a further dividend of $4,000 on 30 June 2018. 7. X Ltd rents premises owned by Stryker Ltd. X Ltd paid $30,000 cash for rent during the year ending 30 June 2018. X Ltd has a rent payable balance at 30 June 2017 of $2,000 and a rent payable balance at 30 June 2018 of $10,000. Additional information: i. Depreciation method for group assets is straight line on asset cost over remaining useful life, no residual value. ii. The company tax rate is 30% (a) Required: Prepare the appropriate consolidation adjustment and elimination journal entries for the year ended 30 June 2018 in the space available on pages 6-7 (show workings separately if you wish). Number each journal to match the information given above which supports the entry (i.e. 1(a), 1(b), 1(c) etc...., 2, 3(a), 3(b) etc.