Please see attached question and answer the questions

A. Prepare the acquisition analysis and BCVR entries of Ethan Ltd at 1 July 2018

B. Prepare the consolidation worksheet entries at 30 June 2019.

CComplete the consolidation worksheet at 30 June 2019. (Suggested template below).

Ethan Ltd acquired all the issued shares (cum div.) of Darren Lid on 1 July 2018 for $1 10 000. At this date Darren Ltd recorded a dividend payable of $10 000 and equity of: " Share capital - $54 000 4 Retained earnings 36 000 Asset revaluation surplus - 18 0004 All the identifiable assets and liabilities of Darren Ltd were recorded at amounts equal to their fair valu at acquisition date except for: " Carrying amount+ Fair value + Inventories + 14 000+ 16 000- Machinery (cost $100 000) - 92 500+ 94 000 The machinery was considered to have a further 5-year life. Of the inventory, 90% was sold by 30 June 2019. The remainder was sold by 30 June 2020. ~ Both Darren Lid and Ethan Lid use the valuation method to measure the land. At 1 July 2018, the balan of Ethan Ltd's asset revaluation surplus was $13 500.~ In May 2019, Darren Lid transferred $3 000 from the retained earnings at 1 July 2018 to a general rese The tax rate is 30%. ~ The following information was provided by the two companies at 30 June 2019.+ Ethan Ltd+ Darren Ltd + Profit before tax - $ 120 000 + $ 12 500 - Income tax expense . (56 000) (4 200) Profit for the year 64 000 8 300 Retained earnings (1/7/18) 80 000 36 000 144 000 44 300 Transfer to general reserve . (0) (3 000)+ Retained earnings (30/6/19) , $144 000 $41 3004 Share Capital. $360 000 $54 000 - Retained earnings . 144 000 41 300 General reserve + 10 000 3 000 Asset revaluation surplus 18 500 + 20 000 Liabilities + 42 500 13 000 $575 000 $131 300 Land $160 000 $20 000 + Plant & Machinery , 360 000 125 600 Accumulated depreciation - plant & machinery. (110 000) 33 000) Inventories + 55 000 18 700+ Shares in Darren Ltd- 110 000 0 + $575 000 $131 300