The following information has been extracted from the financial statements of Third Ltd and its subsidiary Rock Ltd at 30 June 2019. Third Ltd ($) Rock Ltd ($) Reconciliation of opening and closing retained earnings Sales revenue 593,400 498,800 Cost of goods sold (399,040) (204,680) Gross profit 194,360 294,120 Dividends revenue from Rock Ltd 63,984 --- Management fee revenue 22,790 --- Profit on sale of plant 30,100 --- Expenses Administrative expenses (26,488) (33,282) Depreciation (21,070) (48,848) Management fee expense --- (22,790) Other expenses (86,946) (66,220) Profit before tax 176,730 122,980 Tax expense (52,890) (36,292) Profit for the year 123,840 86,688 Retained earnings-30 June 2018 274,684 205,712 398,524 292,400 Dividends paid (118,164) (79,980) Retained earnings-30 June 2019 280,360 212,420 Statements of financial position Shareholders' equity Retained earnings 280,360 212,420 Share capital 301,000 172,000 Current liabilities Accounts payable 47,042 39,818 Tax payable 35,518 21,500 Non-current liabilities Loans 149,210 99,760 813,130 545,498 Current assets Accounts receivable 51,084 53,578 Inventory 79,120 24,940 Non-current assets Land and buildings 192,640 280,360 Plant -at cost 257,871 305,988 Accumulated depreciation (73,745) (119,368) Investment in Rock Ltd 306,160 -- 813,130 545,498 Other information 1. Third Ltd acquired its 80 per cent interest in Rock Ltd on 1 July 2010. At that date the capital and reserves of Rock Ltd were: Share capital $172,000 Retained earnings $146,200 $318,200 At the date of acquisition all assets were considered to be fairly valued. 2. The management of Third Ltd use the partial goodwill method. 3. During the year Third Ltd made total sales to Rock Ltd of $55,900, while Rock Ltd sold $44,720 in inventory to Third Ltd. 4. The opening inventory in Third Ltd as at 1 July 2018 included inventory acquired from Rock Ltd for $36,120 that cost Rock Ltd $30,100 to produce. 5. The closing inventory in Third Ltd includes inventory acquired from Rock Ltd at a cost of $28,896. This cost Rock Ltd $24,080 to produce. Asia Pacific College of Business and Law ACT305 Corporate Accounting Assignment Semester 1, 4 of 5 6. The closing inventory of Rock Ltd includes inventory acquired from Third Ltd at a cost of $10,320. This cost Third Ltd $8,256 to produce. 7. The management of Third Ltd believe that goodwill acquired was impaired by $2,580 in the year to 30th June 2019. The balance on the accumulated impairments of goodwill account brought forward was $19,350. 8. On 1 July 2018 Third Ltd sold an item of plant to Rock Ltd for $99,760 when its carrying value in Third Ltd's accounts was $69,660 (cost $116,100, accumulated depreciation $46,440). This plant is assessed as having a remaining useful life of six years. 9. Rock Ltd paid $22,790 in management fees to Third Ltd. 10. The tax rate is 30 per cent. REQUIRED Prepare the consolidation worksheet JOURNAL ENTRIES for the preparation of consolidated financial statements by Third Ltd at 30 June 2019. NOTE a consolidation worksheet is NOT required. Your answer should include an acquisition analysis with a calculation of goodwill, preacquisition entries, dividend adjustments, intragroup sales and transfers, and a calculation of the non-controlling interest.