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Tony Ltd purchased all the shares of Stark Ltd on 31 December 20X3. Stark's assets were recorded at fair value except for the following:

Land: Carrying amount $47000 Fair value $70000

Inventory: Carrying amount $23000 Fair value $25000

Equipment: Carrying amount $50 000 Fair value $75 000

Accounts receivable: Carrying amount $33 000 Fair value $29 000

Also, there were internationally generated patents in Stark Ltd that had a fair value of $60 000. The patents were not recognized by Stark Ltd.

Additional information for the above assets:

After the control date, Stark continues to use the cost model to measure the land and equipment but, for group/consolidation purposes, revaluation to fair value is the model applied.

Fair value of the land at 31 December 20X4 was $90,000.

Stark's inventory held at the control date was all sold to external parties in the year ended 31 December 20X4.

The equipment had a remaining useful life of 5 years at the control date. The residual value is nil. The equipment originally cost $70,000.

Required:

Prepare entries for the required consolidation data adjustments on 31 December 20X4, the year end. (8 marks)

Reminder:

For each entry, please the label Dr and Cr sides clearly (otherwise no marks).

No marks will be awarded for workings/calculations.

Narrations are not required for the entries.

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