On 1 July 2016, Cena Ltd acquired 80% of the shares of Lesnar Ltd for $40 000. The following balances appeared in the records of Lesnar Ltd at this date:

Share Capital $20 000
General Reserve     2 000
Retained Earnings   10 000

At 1 July 2016, all the identifiable assets and liabilities of Lesnar Ltd were recorded at fair value except for the following:

Carrying amount Fair value
Machinery (cost $36 000)  $30 000 $40 000
Inventory 16 000  20 000
Receivables  20 000  18 000

The machinery, which had a remaining useful life of 5 years, was adjusted to fair value after the acquisition date in the consolidation worksheet. The machinery was sold by Lesnar Ltd on 1 January 2021 for $4000, with the related valuation reserve being transferred on consolidation to retained earnings. By 30 June 2017, receivables had all been collected and inventory sold. For the year ended 30 June 2021, the following information is available:

a) Intragroup sales were:
Lesnar Ltd to Cena Ltd – $40 000. The mark-up on cost of all sales was 25%.
At 30 June 2021, inventory of Cena Ltd included $2000 of items acquired from Lesnar Ltd.

b) At 30 June 2020, inventory of Cena Ltd included goods of $1000 resulting from a sale on 1 March 2020 of non-current assets by Lesnar Ltd at a before-tax profit of $200. These items were sold by Cena Ltd on 1 September 2020. This class of non-current assets is depreciated using a 10% depreciation rate on a straight-line basis.

c) On 1 January 2021, Lesnar Ltd sold an item of plant to Cena Ltd for $2000 at a before-tax profit of $800. For plant assets, Lesnar Ltd applies a 10% p.a. straight line depreciation rate, and Cena Ltd uses a 5% p.a. straight-line method.

d) The current tax rate is 20%.

Financial information for the year ended 30 June 2021 includes the following:

Cena Ltd    Lesnar Ltd
$ $
Sales revenue 88000 52000
Other revenue 12000 8000
Total revenue 100000 60000
Cost of sales 58000 26000
Other expenses:
Selling and administrative (including depreciation) 4000 2000
Financial 2000 1000
Carrying amount of non-current assets sold 6000 5000
70000 34000
Gross profit 30000 26000
Dividend revenue 3000 0
Profit before tax 33000 26000
Income tax expense 13200 10400
Profit 19800 15600
Retained earnings at 1 July 2020 40000 20000
59800 35600
Transfer to general reserve 3800 1000
Interim dividend paid 4000 8000
Final dividend declared 4000 4000
11800 13000
Retained earnings at 30 June 2021 48000 22600
Asset revaluation reserve (1/7/20) 3000 2000
Gains on property revaluation 1000 500
Asset revaluation reserve (30/6/21) 4000 2500

Required:
Prepare the acquisition analysis and consolidation worksheet journal entries for the preparation of the consolidated financial statements of Cena Ltd at 30 June 2021 using the partial goodwill method.

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