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(b) Calculate Sunshine Ltd's share of Watsonia Ltd's profit for the year ended 30 June 2021 in accordance with AASB 128 Investments in Associates and Joint Ventures. (3 marks) Enter your answer here (c) Complete all the consolidation entries that would be required by Sunshine Ltd for the year ended 30 June 2021 to account for the Investment in Watsonia Ltd in the consolidated financial statements. (4 marks) Enter your answer here On 6 October 2019, Sunshine Ltd acquired 30% of the shares in Watsonia Ltd for $2.880,000 cash. Sunshine has significant influence over Watsonia. At that date the identifiable assets and liabilities of Sunshine were recorded at fair value. The equity of Watsonia at that date consisted of: Share Capital Reserves Retained Earnings 6,600,000 1,200,000 2,400,000 . During the year ended 30 June 2020 Watsonia reported a net profit of $480,000 and declared and paid dividends of $240,000 on 30 June 2020. . During the year ended 30 June 2021 Watsonia: *reported a net profit of $600,000 *declared and paid dividends of $480,000 on 30 June 2021. *sold inventory to Sunshine, resulting in an unrealised profit of $48,000. *On 1 July 2020, Watsonia sold an equipment to Sunshine Ltd, recording a gain on sale of $240,000. The expected remaining useful life of the equipment at date of sale was 10 years. *On 30 June 2021, Watsonia revalued land upwards by $500,000 (subject to tax if realised). Assume Sunshine Ltd is a parent entity and prepares consolidated financial statements each year. Assume a company tax rate of 30% Required: (a) Provide the journal entries to record the relevant transactions for this investment for the year ended 30 June 2020 by Sunshine Ltd. (2 marks) Enter your answer here

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