The information below relates to highflyer limited and lowflyer limited On 1st July 2018, Highflyer limited acquired all of the issued shares of lowflyer limited for $345,000. At the acquisition date the equity of lowflyer limited consisted of: Share capital = $135,000 Reserves = $ 115,000 Retained Earnings = $80,000 At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of lowflyer ltd with the exception of inventory which had a fair value $3000 greater than its carrying amount. The corporate tax rate is 32% Required:a) You need to an analysis of the situation and also prepare the 30 june 2019 consolidation journal entries (with narrations) that are relevant to the above transactions and events for the books/ records of the parent company b) On 30 june 2019, the drafted individual financial statements of both companies are given below based on the adjustment entries provided , complete the consolidation worksheet for 30 june 2019 provided below Highflyer Ltd LowflyerLtd Adjustments DR Sales revenue 750,000 210,000 Cost of goods sold 225,000 60,000 Gross profit 525,000 150,000 Other expenses 50,000 25,000 Profit before tax 475,000 125,000 Income tax expenses 150,000 40,000 Net profit before tax 325,000 85,000 Opening retained earnings 195,000 80,000 Group CR Closing retained earnings 520,000 165,000 Share capital 310,000 135,000 Reserves 95,250 115,000 - - 205,000 110,000 125,250 5,000 1,255,50 0 530,000 Cash 399,500 227,500 Inventory 82,500 35,000 Deferred tax asset 13,500 10,000 Land 335,000 257,500 Investments( includi ng investment in lowflyer ltd 425,000 - Goodwill carrying amount - - 1,255,50 0 530,000 Business combination valuation reserve Payables Deferred tax liabilities total