Share capital General reserve Retained earnings $650 000 20 000 250 000
On 1 July 2022, Dean Ltd acquired the remaining 80% of the issued shares of Lewis Ltd for shares in Dean Ltd with a fair value of $1 000 000. At that date, the financial statements of Lewis Ltd showed the following information.
All the assets and liabilities of Lewis Ltd were recorded at amounts equal to their fair values at the acquisition date, except some equipment recorded at $50 000 below its fair value with a related
The Company tax rate is 30%.
Required
- Prepare the acquisition analysis in good format at 1 July 2022.
- Prepare the consolidation worksheet
journal entries for Dean Ltd.’s group at 1 July 2022, assuming that Lewis Ltd has not revalued the equipment in its own accounts. - Complete the BCVR ledger account as at 1 July 2022.
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