The plant and equipment is expected to have a further 4-year life and is depreciated on a straight- line basis. The inventory was all sold by 30 June 2018. Peters Lid had expensed all the outlays on research and development. ITP Syd Ltd placed a fair value of $12 000 on this asset. Peters Lid also had reported a contingent liability at 30 June 2017 in relation to claims by customers for damaged goods. ITP Syd Ltd placed a fair value of $3000 on these claims. The research and development is amortised evenly over a 10-year period. The claims by customers were settled in May 2018 for $2800. The company tax rate is 30%. Required (a) Prepare the consolidated financial statements of ITP Syd Ltd at 1 July 2017, immediately after the business combination (b) Prepare the consolidation worksheet entries at 30 June 2018. Case 3: Intragroup transactions (5% ) Ammi Ltd owns all of the shares of VStone Lid . In relation to the following intragroup transactions , all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30 % . (a) On 1 January 2018, Ammi Led sold inventory costing $6000 to VStone Ltd at a transfer price of $9000. On 1 September 2018, VStone Ltd sold half these items of inventory back to Ammi Ltd, receiving $3000 from Ammi Ltd. Of the remaining inventory kept by VStone Lid, half was sold in January 2019 to Goanna Ltd at a loss of $200. (b) On 1 January 2019, VStone Lid sold an item of plant to Ammi Ltd for $2000. Immediately before the sale, VStone Ltd had the item of plant on its accounts for $3000. VStone Lid depreciated items at 5% p.a. on the diminishing balance and Ammi Lid used the straight -line method over 10 years. (c) On 1 July 2018, Ammi Led sold a motor vehicle to VStone Lid for $12 000. This had a carrying amount to Ammi Lid of $9600. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost . (d) During the 2017 - 18 period, Ammi Ltd sold inventory to VStone Ltd for $9000, recording a before-tax profit of $1800. Half this inventory was unsold by VStone Ltd at 30 June 2018. (e) VStone Ltd sells second-hand machinery. Ammi Led sold one of its depreciable assets (original cost $80 000, accumulated depreciation $64 000) to VStone Lid for $10 000 on 1 January 2019. VStone Ltd had not resold the item by 30 June 2019. (f) On 1 May 2019, VStone Ltd sold inventory costing $300 to Ammi Lid for $380 on credit. On 30 June 2019, only half of these goods had been sold by Ammi Led, but Ammi Led had paid $280 back to VStone Ltd