On 1 July 2019, Casa Ltd acquires a 40 per cent interest in Jasa Ltd for a cash consideration of $1,120,000. On the date of the acquisition, the assets of Jasa Ltd are reported at their fair value. The total share capital and reserves of Jasa Ltd as at the date of the acquisition are: Share capital $2,000,000 Retained earnings $800,000 Total shareholders’ equity $2,800,000 Additional information: For the year ending 30 June 2020, Jasa Ltd records an after-tax profit of $200,000. A dividend of $80,000 is declared and ratified by Jasa Ltd on 30 June 2020, with the dividend coming from profits earned in the June 2019-2020 financial year. In October 2020, Jasa Ltd pays the $80,000 dividend declared for on 30 June 2020. For the year ending 30 June 2020, Jasa Ltd records an after-tax loss of $120,000. On 30 June 2020, Jasa Ltd declares dividends of $20,000, to be paid out of the profits earned in the 2019 financial year. On 30 June 2021, Jasa Ltd revalued its land upwards by an amount of $400,000. Casa Ltd recognises dividends as revenue when the investee declares the dividends (i.e. Casa Ltd also recognises a dividend receivable). The corporate tax rate of Casa Ltd is 30 per cent. Required: a) Do you think that there was a goodwill recognised at the initial acquisition of Jasa Ltd? If you think so, how much was the goodwill? You need to support your arguments. [05 Marks] b) Prepare the journal entries for the years ending 30 June 2020 and 30 June 2021 to account for the investment in Jasa Ltd using the equity method of accounting and assuming that Casa Ltd is a parent entity (and therefore prepares consolidated financial statements).