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As part of a corporate expansion plan, Stavanger Ltd acquired all the share capital (cum-dividend) of Askoy Ltd on 1 July 2018 for $138 000 cash. The statement of financial position of both companies at 30 June 2018 was as follows:

	Stavanger Ltd	Askoy Ltd
Share capital	180 000	80 000
Retained earnings	82 000	45 000
Total equity	$262 000	$125 000
Provisions	88 000	27 000
Dividend payable	20 000	10 000
Total liabilities	$108 000	$37 000
Total equity and liabilities	$370 000	$162 000
Cash	150 000	10 000
Accounts receivables	40 000	25 000
Land	55 000	42 000
Plant	190 000	100 000
Accumulated depreciation	(65 000)	(15 000)
Total assets	$370 000	$162 000

All identifiable assets and liabilities of Askoy Ltd were recorded at fair value as at 30 June 2018 except for the following:

	Carrying amount	Fair value
Land Plant (cost $100 000)	$42 000 $85 000	$45 000 $90 000

The plant is expected to have a further useful life of 5 years. The dividend payable at 1 July 2018 was paid in October 2018. A dividend of $15 000 was declared on 30 June 2019 out of profits earned before 1 July 2018. The company tax rate is 30%.

Required:

(a) Complete the acquisition analysis and prepare the consolidation worksheet journal entries, the consolidation worksheet and the consolidated statement of financial position for Stavanger Ltd and its subsidiary Askoy Ltd as at 1 July 2018. (27 marks)

(b) Prepare the consolidation worksheet journal entries for the preparation of consolidated financial statements for Stavanger Ltd and its subsidiary Askoy Ltd as at 30 June 2019. (8 marks)

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