1. Venus Ltd acquired 100% of the issued shares of Mars Ltd on 1 July 2010. The following intra-group transactions are relevant to the Venus Ltd consolidated financial statements for the 2016 financial year:

(1) Dividends paid and proposed by the two companies for the 2016 financial year are as follows:

Venus Ltd $300,000 final dividend proposed. $150,000 interim dividend paid.

Mars Ltd $200,000 final dividend proposed. $100,000 interim dividend paid.

(2) During the year ended 30 June 2016, Mars Ltd sold goods to Venus Ltd for $80,000. These goods cost Mars Ltd $60,000. At 30 June 2016, 25% of these goods remained in Venus Ltd’s inventory.

(3) During the year ended 30 June 2016, Venus Ltd sold goods to Mars Ltd for $200,000. These goods cost Venus Ltd $140,000. 40% of these goods remained in Mars Ltd’s inventory at 30 June 2016.

(4) During the year ended 30 June 2015, Mars Ltd sold goods to Venus Ltd for $100,000. These goods cost Mars Ltd $75,000. At 30 June 2015, 20% of these goods remained in Venus Ltd’s inventory.

(5) Both Venus Ltd and Mars Ltd use the periodic inventory method.

(6) Payment has been made for all intra-group sales except for $60,000 owed by Venus Ltd to Mars Ltd at 30 June 2016.

(7) On 1 July 2014, Venus Ltd sold an item of plant to Mars Ltd for $400,000. The plant had an original cost to Venus Ltd of $300,000 with accumulated depreciation of $100,000 at 1 July 2014. At 1 July 2014, the plant had a remaining useful life of 5 years and a zero salvage value. The Venus Ltd group uses straight-line depreciation.

(8) The company income tax rate is 30%.

Required:

Show all consolidation adjusting entries needed to eliminate the above intra-group transactions for a complete set of consolidated financial statements for financial year ended 30 June 2016 in accordance with AASB

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