1.Required Prepare the acquisition analysis at 1 July 2022. 2.Prepare the consolidation worksheet entries for Birds Ltd’s group at 1 July 2022.
On 1 July 2022, Birds Ltd acquired all the issued shares of Tokyo Ltd for $174 800. At this date the equity of Tokyo Ltd consisted of share capital of $80 000 and retained earnings of $68 800. All the identifiable assets and liabilities of Tokyo Ltd were recorded at amounts equal to fair value except for the following. Carrying amount Fair value Patent $60 000 $72 000 Plant (cost $80 000) 40 000 48 000 Inventories 21 600 28 000 The patent was considered to have an indefinite life. It was estimated that the plant had a further life of 10 years, and was
1.Required Prepare the acquisition analysis at 1 July 2022.
2.Prepare the consolidation worksheet entries for Birds Ltd’s group at 1 July 2022.
Step by step
Solved in 3 steps
