Western Ltd acquired 75% of the shares of Quoll Ltd on 1 July 2015. In exchange for these shares, Western Ltd gave a consideration of $28,000 cash and 10,000 shares in Western Ltd, these having a fair value of $2 each. At this date the shareholders equity of Quoll Ltd consisted of:

Share capital (15,000 shares)	$47,000
Retained earnings	9,400

At this date all the identifiable assets and liabilities of Quoll Ltd were recorded at amounts equal to their fair values except for plant for which the fair value was $2,400 greater than the carrying amount of $25,000 (original cost was $35,000). The plant was expected to have a further 5-year life. The fair value of the non-controlling interest at 1 July 2015 was $15,600. Western Ltd uses the full goodwill method. The tax rate is 30%. Assets held by Quoll Ltd at 30 June 2020 include financial assets. Gains and losses on these assets are recognised in other comprehensive income. During the 201920 year Quoll Ltd recorded gains of $1,700 on these assets. Financial information supplied by the two companies at 30 June 2020 was as follows:

	Western Ltd	Quoll Ltd
Sales revenue	$77,000	$120,000
Interest revenue	375	1,000
Dividend revenue	2,700	1,000
	80,075	122,000
Cost of sales	(51,000)	(87,750)
Financial expenses	(2,250)	(3,000)
Selling expenses	(6,000)	(9,000)
Other expenses	(2,250)	(2,250)
	(61,500)	(102,000)
Profit before tax	18,575	20,000
Income tax expense	(7,500)	(8,200)
Profit for the year	11,075	11,800
Retained earnings (01/07/19)	28,900	21,900
	39,975	33,700
Dividend paid	(4,000)	(3,800)
Retained earnings (30/06/20)	35,975	29,900
Share capital	60,000	47,000
Other components of equity		7,800
Total equity	95,975	84,700
Current liabilities	12,750	4,350
Non-current liabilities: Loans		7,500
Total liabilities	12,750	11,850
Total equity and liabilities	$108,725	$96,550
Plant	45,000	94,300
Accumulated depreciation plant	(25,500)	(45,750)
Shares in Quoll Ltd	48,000	0
Loans from Quoll Ltd	3,750	0
Inventories	13,400	23,250
Cash	21,075	750
Financial assets	0	16,500
Deferred tax assets	3,000	7,500
Total assets	$108,725	$96,550

Additional information (a) At 1 July 2020, Western Ltd held inventories that had been sold to it by Quoll Ltd in the previous year at a profit of $1,300. (b) During the 201920 year, Quoll Ltd sold inventories to Western Ltd for $30,500. At 30 June 2020, Western Ltd still had on hand inventories that had been sold to it by Quoll Ltd for a profit of $2,000 before tax. (c) Interest of $375 was paid by Western Ltd to Quoll Ltd on both 30 June 2019 and 30 June 2020. Required a. journal Business combination valuation entry, Pre-acquisition entry,NCI share of equity at 01/07/15,NCI share of equity: 01/07/1530/06/19, NCI share of equity: 01/07/1930/06/20,Profit in opening inventories: Quoll Ltd Western Ltd,NCI adjustment,Profit in ending inventories: Quoll Ltd Western Ltd,NCI adjustment, loans, Interest on loans and dividend paid.

b. Prepare the consolidated financial statements of Western Ltd for the year ended 30 June 2020.