the information below relates to highflyer Ltd and lowflyer LTd

On 30 june 2021,Highflyer Ltd acquired all of the issued shares tolowflyer ltd for $345,000.at the acquisition date the equity of lowflyer Ltd 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 assests and liabilities of lowflyer ltd with the exeption if inventory which had afair value $3000greater than its carrying amount.the corporate tax rate is32%

required,

a) prepare an analysis of the situation and also prepare hte 30 june 2021 consolidation journal entries(with narrations)that are relavant to the above transactions and events for the books/records of the parent company

b) on30 june 2021,the drafted individual financial statements of both companies sre given below.Based on the adjustment entries you have provided,complete the consideration work sheet for 30 june 2021