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The following financial statements of Artificial Ltd and its subsidiary Intelligence Ltd have been extracted from their financial records at 3 0 June 2 0

The following financial statements of Artificial Ltd and its subsidiary Intelligence Ltd have been extracted from their financial records at 30 June 2023.
The accounts of the two companies are presented below.
Artificial Ltd
$ Intelligence Ltd
$
Sales 839250725000
Cost of goods sold (580000)(297500)
Gross profit 259250427500
Dividends revenue 116250-
Management fee revenue 33125-
Gain on sale of plant 43750
452375427500
Less Expenses
Administrative expenses (38500)(48375)
Depreciation (30625)(71000)
Management fee expense -(33125)
Other expenses (126375)(96250)
Profit before tax 256875178750
Tax expense 7687552750
Profit after tax 180000126000
Retained earnings 1 July 2022399250299000
579250425000
Dividends paid (171750)(116250)
Retained earnings 30 June 2023407500308750
Statement of financial position Artificial Ltd
$ Intelligence Ltd
$
Shareholders equity
Retained earnings 407500308750
Share capital 437500250000
Liabilities
Accounts payable -57875
Tax payable 10000031250
Non-current liabilities
Loans 236000145000
1181000792875
Assets
Accounts receivable 7425077875
Inventory 11500036250
Non-current assets
Land and buildings 198750407500
Plant at cost 400000444750
Accumulated depreciation (107000)(173500)
Investment in Intelligence Ltd 500000-
1181000792875
Other information:
Artificial Ltd acquired its 100 percent interest in Intelligence Ltd on 1 July 2016 seven years earlier. The cost of the investment was $500000. At that date the capital and reserves of Intelligence Ltd were: $
Share capital 250000
Retained earnings 200000
450000
At the date of acquisition all assets were considered to be fairly valued.
In applying the impairment test for goodwill in the current year, the directors have determined that a write-down of $3750 is required for consolidation purposes. The cumulative goodwill impairment write-downs for prior years amounted to $20000.
During the year Artificial Ltd made total sales to Intelligence Ltd of $81250, while Intelligence Ltd sold $65000 in inventory to Artificial Ltd.
The opening inventory in Artificial Ltd at 1 July 2022 included inventory acquired from Intelligence Ltd for $52500 that cost Intelligence Ltd $43750 to produce.
The closing inventory in Artifical Ltd includes inventory acquired from Intelligence at a cost of $42000. This cost Inteligence Ltd $35000 to produce.
The closing inventory of Intelligence Ltd includes inventory acquired from Artificial Ltd at a cost of $15000. This cost Artificial Ltd $12000 to produce.
An item of plant and equipment owned by Artificial Ltd was sold to Intelligence Ltd on 1 July 2022 for $145000 when its carrying amount was $101250(cost $168750, accumulated depreciation of $67500). This plant is assessed as having a remaining useful life of six years. The Group has a policy of measuring its property, plant and equipment using the cost model.
Intelligence paid management fees to Artificial Ltd.
The tax rate is 30%.
Required
1. Prepare an acquisition analysis.
2. Prepare the consolidation journal entries necessary to prepare consolidated accounts for the year ending 30 June 2023 for the group comprising Artificial Ltd and Intelligence Ltd. Provide a brief explanation (3-4 lines) for each of the consolidation journal entries, explaining why the entry is being made.
3. Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2023. Prepare the consolidated statement of profit or loss only for the year ended 30 June 2023.
4. Following consolidation, should dividends paid to the parent entity by its subsidiaries be shown in the economic entitys financial statements? In the consolidated financial statements, which dividends would be shown?
5. If a subsidiary sells inventory to the parent entity and some of the inventory is still on hand at year end, what adjustments are necessary at year end? Further, will adjustments be required to restate the balance of opening inventory as at the beginning of the next financial period?

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