Undervalued assets, full and partial goodwill method, intragroup transactions   LO3, 4, 6 On 1 July 2015, Jake Ltd acquired 75% of the issued shares of Aiden Ltd for $40 000. The following balances appeared in the records of Aiden Ltd at this date. Share capital $20 000 General reserve 2 000 Retained earnings 10 000 At 1 July 2015, all the identifiable assets and liabilities of Aiden Ltd were recorded at fair value except for the following. Carrying amount Fair value Machinery (cost $36 000) $30 000 $40 000 Inventories 16 000 20 000 Receivables 20 000 18 000 The machinery had a remaining useful life of 5 years beyond 1 July 2015, with benefits to be received on a straight‐line basis over the period. The machinery was sold by Aiden Ltd on 1 January 2020 for $4000. By 30 June 2016, receivables had all been collected and inventories sold. Any adjustments for differences at acquisition date between carrying amounts and fair values are made in the consolidation worksheet. For the year ended 30 June 2020, the following information is available. • Intragroup sales were: Aiden Ltd to Jake Ltd — $40 000. The mark‐up on cost of all sales was 25%. • At 30 June 2020, inventories of Jake Ltd included $2000 of items acquired from Aiden Ltd. • At 1 July 2019, inventories of Jake Ltd included goods of $1000 resulting from a sale on 1 March 2019 of non‐current assets by Aiden Ltd at a before‐tax profit of $200. These items were on-sold to external entities by Jake Ltd on 1 September 2019. This class of non‐current assets is depreciated using a 10% p.a. depreciation rate on a straight‐line basis. • On 1 January 2020, Aiden Ltd sold an item of plant to Jake Ltd for $2000 at a before‐tax profit of $800. For plant assets, Aiden Ltd applies a 10% p.a. straight‐line depreciation rate, while Jake Ltd uses a 2.5% p.a. straight‐line rate. • The tax rate is 30%. • Financial information for the year ended 30 June 2020 includes the following. Jake Ltd Aiden Ltd Sales revenue $84 000 $51 000 Dividend revenue 3 000 — Other revenue 12 000 8 000 Total revenue 99 000 59 000 Cost of sales 58 000 26 000 Other expenses: 4 000 2 000 Selling and administrative (including depreciation) 8 000 6 000 Financial Total expenses 70 000 34 000 Profit from trading 29 000 25 000 Gains/(losses) on sale of non‐current assets 4 000 1 000 Profit before tax 33 000 26 000 Income tax expense 13 200 10 400 Profit for the period 19 800 15 600 Retained earnings (1/7/19) 40 000 20 000 59 800 35 600 Transfer to general reserve 3 800 1 000 Interim dividend paid 4 000 8 000 Final dividend declared 4 000 4 000 11 800 13 000 Retained earnings (30/6/20) $48 000 $22 600 Asset revaluation surplus (1/7/19) $ 3 000 $ 2 000 Gains on property revaluation 1 000 500 Asset revaluation surplus (30/6/20) $ 4 000 $ 2 500 Required 1. Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements for Jake Ltd at 30 June 2020 using the partial goodwill method. 2. Prepare the entries that would change in requirement 1 above if the full goodwill method were used. The fair value of the NCI at 1 July 2015 was $12 900.