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Q4) On 1 JULY 2019, WOW Ltd purchased 45% of the shares of POLION Ltd at a cost of $280,000

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Q4) On 1 JULY 2019, WOW Ltd purchased 45% of the shares of POLION Ltd at a cost of $280,000. WOW Ltd does not POLION Ltd but does have significant influence. The carrying amount of POLION Ltd net assets (at fair value) at date of acquisition were as follows: Equity Share capital Asset Revaluation Surplus Retained earnings 1/7/2019 470,000 35,000 90,000 The following information relates to POLION Ltd for 30/06/20 and 30/06/21; 30/06/20 165,000 Profit / Loss after tax Dividend declared Asset Revaluation Surplus 30/06/21 202,000 36,000 49,000 35,000 Profit/Loss after tax has been calculated including the following information. The tax rate is 30% During the year ended 30 JUNE 2021, POLON Ltd sold inventory to wow for $16,000. The cost of this inventory to POLON Ltd was $7,500. The inventory is still on hand at the end of the year. On 1 JANUARY 2021, WOW Ltd sold POLON Ltd and item of plant for $48,000. The plant had originally cost wow Ltd $60,000 and had a carrying amount of $30,000 at the time of sale to POLION Ltd. Both companies depreciate plant at the rate of 15% per annum on cost. Required: Prepare the journal entries required by wow Ltd relating to its investment in POLION Ltd and subsequent transactions for the period from 1 JULY 2019 to 30 JUNE 2021. wow Ltd is a parent entity