Part BOn 1 July 2016, Mutt Ltd acquired all the issued shar

Part B:On 1 July 2016, Mutt Ltd acquired all the issued shares of Jeff Ltd for $174 800. At this date theequity of Jeff Ltd consisted of share capital of $80 000 and retained earnings of $68 800. All theidentifiable assets and liabilities of Jeff Ltd were recorded at amounts equal to fair value except for:                                                                                 Carrying amount                              Fair valuePatent                                                                  $60 000                                                 $72 000Plant (cost of $80 000)                                      40 000                                                   48 000Inventory                                                               21 600                                                   28 000The patent was considered to have an indefinite life. It was calculated that the plant had a further life of 10 years, and was depreciated on a straight-line basis. All the inventory was sold by 30 June 2017. In June 2017, Jeff Ltd conducted an impairment test on the patent, as it was considered to have an indefinite life, and the goodwill. As a result, the goodwill was considered to be impaired by $1200. In May 2017, Jeff Ltd transferred $20 000 from the retained earnings on hand at 1 July 2016to a general reserve. The tax rate is 30%. RequiredPrepare the consolidation worksheet adjustments entries at 1 July 2016 and 30 June 2017. Show all workings