Rackoff Ltd	Makeme Ltd	Adjustments			Group
			DR	Ref	CR
Sales revenue	1,500,000	420,000
Cost of goods sold	450,000	120,000
Gross profit	1,050,000	300,000
Other expenses	100,000	50,000
Profit before tax	950,000	250,000
Income tax expenses	285,000	75,000
Net profit after tax	665,000	175,000
Opening retained earnings	390,000	250,000
Closing retained earnings	1,055,000	425,000
Share capital	620,000	200,000
Reserves	190,500	300,000
Business Combination Valuation Reserve
Payables	410,000	130,000
Deferred tax liabilities	250,500	10,000
	2,526,000	1,065,000
Cash	863,000	460,000
Accounts Receivable	16,000	70,000
Deferred tax assets	27,000	20,000
Land	670,000	515,000
Investments (including investment in Makeme Ltd.)	950,000
Goodwill (carrying amount)
	2,526,000	1,065,000

information below relates to Rackoff Ltd and Makerne ud. On 1 Buly 2019 Rackoff Ltd acquired all of the issued shares of Makeme Ltd for $880,000. At the acquisition date the equity of Makeme ha sorted Share capital $200,000 Reserves 300,000 Retained earnings 250,000 At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of Makeme Ltd with the exception of Accounts Receivable which had a fair value $10,000 greater than its carrying amount. The corporate tax rate is 30% Required: (a) Prepare the Analysis of the situation and prepare the 30 June 2020 consolidation journal entries (with narrations) relevant to the above transactions and events for the books of the parent company. marks) (8 (b) On 30 June 2020, the drafted individual financial statements of both companies are given as below. Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2020 provided. (12 marks)