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In 30 June 2019, Charles Ltd gained control of Darwin Ltd by purchasing all its share capital. On the control date, the fair values of Darwin Ltd's following assets differed from their carrying amounts: Carrying amount ($) Fair value ($)Accounts receivable 6 700 7 700Inventory 80 000 84 000Building (cost $240 000, with nil residual value) 210 000 200 000 Also, Darwin Ltd in its own financial statements at 30 June 2019 disclosed a contingent liability relating to guarantees for loans. Charles Ltd determined that this liability had a fair value of $9,000.
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Problem 1: Prepare journal entries for the required consolidation data adjustments on 30 June 2020.
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