'X' Ltd acquired on 1 July 2019 all the issued shares (cum div.) of 'Y' Ltd for$33000. At this date, the equity of 'Y' Ltd was as follows.

 Share capital $20,000 General reserve 2,000 Retained earnings 5,000 

All the identifiable assets and liabilities of 'Y' Ltd were recorded at amounts equal to their fair values except for the following.

Carrying amount Fair Value

Plant (cost$22000) $18000 $18 600

Land 19000 21000

Inventories 2000 2800

The plant's expected remaining useful life was 5 years with benefits being expected evenly over that period. The plant was sold on 1 January 2022 for$18 700. The land was sold in February 2021 for$25000. Of the inventories, 90% was sold by 30 June 2020 and the rest by 30 June 2021.

At 1 July 2019, 'Y' Ltd had recorded a dividend payable of$1000that was paid in September 2019. 'Y' Ltd also had some unrecorded assets, in particular the brands relating to the clothing sold in the teenage market. 'X' Ltd valued these brands at$1 200and assessed them to have an indefinite life. In the notes to its financial statements at 30 June 2019, 'Y' Ltd disclosed a contingent liability relating to a guarantee it had made to one of its related companies. 'X' Ltd assessed the fair value of the guarantee payable as being$1000. In August 2021, 'Y' Ltd was required to pay $250 in relation to the guarantee.

All transfers to the general reserve made by 'Y' Ltd have been from retained earnings earned prior to 1 July 2019. The tax rate is 30%.

The financial information provided by the two companies X and Y Ltd at 30 June 2022 is as follows.

'X' Ltd 'Y' Ltd

Revenues $19000 $11000

Less: Expenses (8000) (7 600)

11000 3400

Add: Gains on sale of non-current assets 500 400

Profit before tax 11 500 3 800

Less: Income tax expense (4000) (600)

Profit for the year 7 500 3 200

Add: Other comprehensive income

Gains on revaluation of plants 1 200 0

Comprehensive income for the year $8 700 $3 200

Profit for the year $7 500 $3 200

Add: Retained earnings (1/7/21) 8000 8 800

Total 5 500 12 000

Less: Dividend paid (3 400) 0

Less: Transfer to general reserve 0 (1 500)

Total (3 400) (1 500)

Retained earnings (30/6/22) $12 100 $10 500

Share capital $28 000 $20 000

General reserve 2 000 4 800

Asset revaluation surplus 2 400 0

Retained earnings 12 100 10 500

Total equity 44 500 35 300

Provision 1 500 1 200

Payables 4 000 800

Total liabilities 5 500 2 000

Total equity and liabilities $50 000 $37 300

Cash $1 200 $3 000

Accounts receivable 2 800 1 200

Inventories 3 000 5 100

Plant 23 000 32 000

Accumulated depreciation plant (12 000) (4 000)

Shares in Brooks Ltd 32 000 0

Total assets $50000 $37 300

Required

1. Prepare the acquisition analysis at 1 July 2019.
2. Prepare the consolidation worksheet entries for 'X' Ltd's group at 30 June 2022.
3. Prepare the consolidation worksheet for 'X' Ltd's group at 30 June 2022