The following financial statements of L Ltd and its subsidiary Y Ltd have been extracted from their financial records at 31 December 2016.

	L Ltd	Y Ltd
Statement of Comprehensive Income	$	$
Sales revenue	670 000	480 000
Inventory 1 January 2016	86 000	32 000
Purchases	470 000	235 000
Inventory 31 December 2016	92 000	29 000
Cost of sales	464 000	238 000
Gross profit	206 000	242 000
Other income	47 500	-
Dividends received	21 000	-
Management fee	26 500	-
Total income	253 500	242 000
Expenses	152 000	179 000
Administration expenses	26 400	38 700
Depreciation	24 500	36 800
Management fee paid	-	26 500
Other expenses	101 100	77 000
Profit before tax	101 500	63 000
Taxation	41 200	25 200
Profit for the year	60 300	37 800
Dividends paid	55 200	30 000
Retained earnings for year	5 100	7 800

Statement of Financial Position
Assets
Investment in Y Ltd	289 000	-
Land and buildings	224 000	326 000
Plant & machinery book value	214 100	217 000
Accounts receivable	59 400	62 300
Inventory	92 000	29 000
	878 500	634 300
Equity and liabilities
Contributed capital	350 000	200 000
Revaluation surplus	-	45 000
Retained earnings	324 500	202 800
Long term loan	108 000	116 000
Accounts payable	54 700	45 300
Taxation payable	41 300	25 200
	878 500	634 300

Additional information:

(i) On 1 July 2013, L Ltd acquired 70% of the issued capital of Y Ltd. At that date the equity of Y Ltd was as follows:

Contributed equity $200 000

Retained earnings $138 000

Revaluation surplus $32 000

At the date of acquisition, all assets are considered to be fairly valued.

(ii) During the year ended on 31 December 2016, L Ltd made sales to Y Ltd amounting to $65 000. L Ltd made a mark-up of 25% on cost.

(iii) Of the inventory Y Ltd has on hand at 31 December 2016, $12 000 was purchased from L Ltd.

(iv) During the year ended on 31 December 2016, Y Ltd sold goods to L Ltd amounting to $32 000. Y Ltd sold the goods to L Ltd at a gross profit of 20% on cost.

(v) Of the inventory L Ltd has on hand at 31 December 2016, $33 600 was purchased from Y Ltd.

Of the inventory L Ltd had on hand at 31 December 2015, $41 760 was purchased from Y Ltd.

(vi) At 31 December 2016, the directors were of the opinion that goodwill acquired on the acquisition of Y Ltd had been impaired by $ 3 000.

(vii) Income tax rate is 40%.

Required:

Following the fair value/full goodwill method, complete the acquisition analysis on 1 July 2013 for L Ltds investment in Y Ltd as required by AASB 3 and AASB10 and determine the amount of goodwill or gain on bargain purchase.

Prepare the acquisition journal entries on 1 July 2013 under the fair value/full goodwill method.

Prepare all consolidated journal entries including non-controlling interest for the year ended 31 December 2016 for consolidation purpose of L Ltd and Y Ltd under the fair value/full goodwill method.