The following financial statements of Tina Ltd and its subsidiary Jane Ltd have been extracted from their financial records at 30 June 2020.

	Tina Ltd ($000)	Jane Ltd ($000)
Reconciliation of operating profit and closing retained earnings
Sales revenue	671.4	540
Cost of goods sold	(464)	(238)
Gross profit	207.4	302
Dividends received from Jane Ltd	93	-
Management fee revenue	26.5
Gain on sale of plant	40	35
Expenses
Administrative expenses	(30.8)	(38.7)
Depreciation	(29.5)	(56.8)
Management fee expense	-	(26.5)
Other expenses	(101.1)	(72)
Profit before tax	205.5	143
Tax expense	(61.5)	(42.2)
Profit for the year	144	100.8
Retained earnings 30 June 2019	319.4	239.2
	463.4	340
Dividends paid	(137.4)	(93)
Retained earnings 30 June 2020	326	247
	Tina Ltd ($000)	Jane Ltd ($000)
Statement of financial position
Shareholders equity
Retained earnings	326	247
Share capital	350	200
Current liabilities
Accounts payable	54.7	46.3
Tax payable	41.3	25
Non-current liabilities
Loans	173.5	116
	945.5	634.3
Current assets
Accounts receivable	59.4	62.3
Inventory	92	29
Non-current assets
Land and Buildings	224	326
Plant at cost	299.85	355.8
Accumulated depreciation	(85.75)	(138.8)
Investment in Jane Ltd	356	-
	945.5	634.3

Other information

a) Tina Ltd acquired its 100 per cent interest in Jane Ltd on 1 July 2015, that is, five years earlier. At that date the capital and reserves of Jane Ltd were:

Share capital $200,000

Retained earnings 180,000

$380,000

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

b) During the year Tina Ltd made total sales to Jane Ltd of $60,000.

c) The closing inventory in Tina Ltd includes inventory acquired from Jane Ltd at a cost of $33,000. This cost Jane Ltd $28,000 to produce.

d) Jane Ltd sold $50,000 in inventory to Tina Ltd.

e) The closing inventory of Jane Ltd includes inventory acquired from Tina Ltd at a cost of $12,000. This cost Tina Ltd $10,000 to produce.

f) The opening inventory in Tina Ltd as at 1 July 2019 included inventory acquired from Jane Ltd for $40,000 that cost Jane Ltd $30,000 to produce.

g) On 1 July 2019 Jane Ltd sold an item of plant to Tina Ltd for $116,000 when its carrying value in Jane Ltds accounts was $81,000 (cost $135,000, accumulated depreciation $54,000). 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. The group uses the straight-line method of depreciation.

h) Jane Ltd paid $26,500 in management fees to Tina Ltd

i) The tax rate is 30 per cent.

Required:

Refer to Requirements a) b) c) and type your answers in the LMS spaces provided. Attachments, emails and copy paste are not allowed.