Blake Ltd, a parent entity, acquired a 25% equity interest (and significant influence) in Forrest Ltd on 1 July 2020, at a cost of $160,000, paid in cash. At the date of acquisition. the shareholders' equity of Forrest Ltd consisted of: Share capital: $390,000 Retained earnings: $285,000 General reserve: $100,000 All the identifiable net assets of Forrest Ltd were assessed as being carried at fair value.

Additional information: 1. Forrest Ltd transferred $40,000 to the general reserve from retained earnings in May 2021. 2. At 30 June 2021, the closing inventory of Forrest Ltd included inventory sold to it by Blake Ltd at a profit of $36,000. This inventory was all sold to third party customers during the financial year ended 30 June 2022. 3. There was no evidence that the investment account had to be impaired. 4. For the financial year ended 30 June 2022, Forrest Ltd reported a profit of $156,000 and paid dividends of $60,000. 5. The retained earnings of Forrest Ltd was $350,000 on 30 June 2021. 6. The income tax rate was 30%.

Required: A. Prepare an acquisition analysis at 1 July 2020 to calculate the amount of goodwill or bargain resulting from the acquisition.

B. Prepare all necessary equity accounting entries recorded by Blake Ltd on consolidation for its investment in Forest Ltd for the financial year ended 30 June 2022.