X Ltd purchased all the shares in Stryker Ltd on 1 July 2014 for $370,000.

1. At 1 July 2014, Stryker Ltd's net assets were considered to be fairly valued, except for plant (with a cost of $245 000 and accumulated depreciation $44 000) which had a fair value of $225 000 and a remaining useful life of 8 years. The Trial Balance of Stryker Ltd at 1 July 2014 was:

	Debit	Credit
Bank	13,000
Inventories	98,000
Plant (net)	201,000
Land & Buildings (net)	120,000
Accounts Payable		72,000
Share capital		280,000
Retained Earnings		80,000
	432,000	432,000

1. Intercompany sales for the year ended 30 June 2021 were: X Ltd sold to Stryker Ltd $90 000, originally cost X Ltd $75 000 Stryker sold to X Ltd $70 000, originally cost Stryker Ltd $50 000

1. At 30 June 2021, X Ltd has sold all inventory outside the group which it purchased from Stryker Ltd. However, Stryker Ltd still has 20% of the inventory it purchased from X Ltd on hand.

1. Inventories on hand from intercompany sales at the start of the year, 1.7.21, were: X Ltd purchased from Stryker Ltd $9 000, originally cost Stryker Ltd $5 000 Stryker Ltd purchased from X Ltd $10,500, originally cost X Ltd $8 000

1. On 31 December 2020 Stryker Ltd paid a dividend of $10,000. The company declared, but had not yet paid, a further dividend of $35,000 on 30 June 2021.

1. On 31 March 2020, X Ltd paid a dividend of $18,000. The company declared, but had not yet paid, a further dividend of $4,000 on 30 June 2021.

1. X Ltd rents premises owned by Stryker Ltd. X Ltd paid $30,000 cash for rent during the year ending 30 June 2021. X Ltd has a rent payable balance at 30 June 2020 of $2,000 and a rent payable balance at 30 June 2021 of $10,000.

Additional information:

1. 1. Depreciation method for group assets is straight line on asset cost over remaining useful life, no residual value.
   2. The company tax rate is 30%

Required:

(a) Prepare the appropriate consolidation adjustment and elimination journal entries for the year ended 30 June 2021. Number each journal to match the information given above which supports the entry (i.e. 1(a), 1(b), 1(c) etc , 2, 3(a), 3(b) etc.)

(b) What will be the balance of "Investment in Stryker Ltd" in the consolidated financial statements of the group as at 30 June 2021? Provide a brief explanation of why.

(c) Assuming X Ltd has no plant and there have been no additions to plant since 1 July 2014, what will be disclosed as the balance of "Plant" in the consolidated financial statements of the group as at 30 June 2021? Provide a brief explanation of why.

(d) Assuming X Ltd has undertaken no revaluations of its own assets, and no further revaluations have been required for Stryker Ltd's assets since 1 July 2014, what will be disclosed as the balance of "Revaluation Surplus" in the consolidated financial statements of the group as at 30 June 2021? Provide a brief explanation of why.