The information below relates to cargill Ltd and peakem ltd

on 1 july 2019,cargill ltd acquired all of the issued shares of peckem ltd for $880,000.at the acquisition date the equity of peckem ltd consisted of

share capital $200,000

Reserves 300,000

Retained earnings 250,000

at the date of acquisition this equity reflected the fair values of all the identifiable assest and liabilities of peckem Ltd with the exception of accounts receivable whicj had a fair value $10,000 greater than its carrying amount.the corpate tax rate is 30%

required

prepare the analysis of the situation and prepare the 30 june 2020 consolidation journal entries(with narrations)relevent to the above transctions and events for the books of the present company

On 30 june 2020.the drafted individual financial statements of both companies are given as below.based on the adjustment entries yo have provided,complete the consolidation worksheet for 30 june 2020 provided

	cargill ltd	peckem ltd		adjustments		Group
sales revenue	1,500,000	420,000	DR	ref	CR
cost of goods sold	450,000	120,000
fross profit	1,050,000	300,000
other expences	100,000	50,000
profit before tax	950,000	250,000
income tax expences	285,000	75,000
net profit after tax	665,000	175,000
opening retained earnings	390,000	250,000
closing retained earnings	1,055,000	425,000
share capita	620,000	200,000
reserves	190,500	300,000
business combination valuation reserve
paybles	410,000	130,000
deferred tax liabilities	250,500	10,000
	2,526,000	1,065,000
cash	863,000	460,000
accounts receivable	16,000	70,000
deferred tax assest	27,000	20,000
land	670,000	515,000
Investments(including investments in peckem LTD)	950,000
goodwill(carrying amount)
	2,526,000	1,065,000