Grace Ltd acquired a 25% interest (enough to constitute a significant influence) in Pear Tree Ltd for $55,000 on 1 July 2020. The equity of Pear Tree Ltd at the date of acquisition totalled $210,000. Additional information: - Grace Ltd does not prepare consolidated financial statements. - A dividend of $10,000 was paid by Pear Tree Ltd in October 2020, with the dividend being paid from post-acquisition profits. - For the year ended 30 June 2021, Pear Tree Ltd recorded an after-tax profit of $40,000 and revalued an item of plant upwards by $20,000. Required: Grace Ltd applies AASB 128 in accounting for its investment in Pear Ltd. Assuming Grace Ltd does not prepare consolidated financial statements and has a 30% tax rate: i. Calculate Grace Ltd's share of profit. Show all workings. (4 marks) ii. Prepare journal entries in the records of Grace Ltd for the year end 30 June 2021 in relation to its investment in Pear Ltd. (4 marks)

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i Calculate Grace Ltds share of profit 1 Calculate the share of profit Share of profit 25 x 4... View the full answer