QUESTION 3 CONSOLIDATIONSThe following financial statements of Joel Ltd and its subsidiary Parko Ltd have been extracted from their financial records at 30 June 2012.Joel LtdParko Ltd$ thousands$ thou

QUESTION 3 CONSOLIDATIONSThe following financial statements of Joel Ltd and its subsidiary Parko Ltd have been extracted from their financial records at 30 June 2012.Joel LtdParko Ltd$ thousands$ thousandsReconciliation of opening and closing retained earningsSales revenue671.40540.00Cost of goods sold(464.00)(238.00)Gross profit207.40302.00Dividends received from Parko Ltd93.00Management fee revenue26.50Gain on sale of plant40.0035.00ExpensesAdministrative expenses(30.80)(38.70)Depreciation(29.50)(56.80)Management fee expense(26.50)Other expenses(101.10)(72.00)Profit before tax205.50143.00Tax expense61.5042.20Profit for the year144.00100.80Retained earnings - 30 June 2011319.40239.20463.40340.00Dividends paid(137.40)(93.00)Retained earnings - 30 June 2012326.00247.00Page | 7Joel LtdParko Ltd$ thousands$ thousandsStatement of financial positionShareholders' equityRetained earnings326247Share capital350200Current liabilitiesAccounts payable54.746.3Tax payable41.325Non-current liabilitiesLoans173.5116945.5634.3Current assetsAccounts receivable59.462.3Inventory9229Non-current assetsLand and building224326Plant - at cost299.85355.8Accumulated depreciation-85.75-138.8Investment in Parko Ltd356945.5634.3Other Information Joel Ltd acquired its 100 percent interest in Parko Ltd on 1 July 2007 that is five years earlier. At that date the capital and reserves of Parko Ltd were:Share capital $200 000Retained earnings $180 000$380 000At the date of acquisition all assets were considered to be fairly valued. During the year Joel Ltd made total sales to Parko Ltd of $60 000, while Parko Ltd sold $50000 in inventory to Joel Ltd. The opening inventory in Joel Ltd as at 1 July 2011 included inventory acquired from Parko Ltd for $40 000 that cost Parko Ltd $30 000 to produce.Page | 8 The closing inventory in Joel Ltd includes inventory acquired from Parko Ltd at a cost of $33000. This cost Parko Ltd $28 000 to produce. The closing inventory of Parko Ltd includes inventory acquired from Joel Ltd at a cost of $12000. This cost Joel Ltd $10 000 to produce. On 1 July 2011Parko Ltd sold an item of plant to Joel Ltd for $116 000 when its carrying value in Parko Ltd’s accounts was $81 000 (cost $135 000, accumulated depreciation $54000). This plant is assessed as having a remaining useful life of six years. Parko Ltd paid $26 500 in management fees to Joel Ltd. The tax rate is 30 percent.Required:1. Prepare the acquisition analysis to determine any goodwill or gain from bargain purchase.2. Prepare the journal entries necessary for consolidation purposes.3. Prepare the consolidation worksheet.4. Prepare the statement of comprehensive income for the year ended 30 June 2012.5. Prepare the statement of financial position as at 30 June 2012.