Part i: Sandy Ltd purchased 100% of the issued capital of Beach Ltd for a cash consideration of $2 million on 1 July 2019. At that time the fair value of the net assets of Beach Ltd were represented...

Part i: Sandy Ltd purchased 100% of the issued capital of Beach Ltd for a cash consideration of $2 million on 1 July 2019. At that time the fair value of the net assets of Beach Ltd were represented by:

PART ii:

During the period ended 30 June 2020, Sandy Ltd sold inventory that cost $240 000 for $300 000 to Beach Ltd. At the end of the period Beach Ltd had sold 80% of this inventory for $400 000. Both companies use a perpetual inventory system. The taxation rate is 30%.

Required:

a) Complete the consolidation journal entries as at 30 June 2020 (for both Part i and Part ii). Show your workings and calculations.