Nina ltd purchased 90% of the issued shares of carl ltd for $2543000 on July 2018 when the equity ltd was as follows:
| Share capital | 1017200 |
| General reserve | 762900 |
| Asset revaluation surplus | 381150 |
At this date, carl ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following:
| Account | Cost | Carrying amount | Fair value | Further life (years) |
| Inventories | $76300 | $83900 | ||
| Land | $191000 | $210000 | ||
| Machinery | $295000 | $236000 | $283000 | 5 |
| Carl ltd identified a t acquisition date a contingent liability related to a lawsuit where carl ltd was sued by a former supplier | $31000 | |||
| Carl ltd had unrecorded and internally generated patent with the FairValue of: | $76000 | |||
| Carl ltd had unrecorded and internally generated in-process research and development with the FairValue of: | $57000 | |||
60% of inventory on hand at 1 July 2018 were sold by 30 june 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and tax rate:30%
Required:
- Prepare the acquisition analysis at acquisition date.
- Prepare the business combination valuation entries and pre-acquisition entry at acquisition date.
- Prepare the journal entry to recognise NCI at acquisition date.
- Prepare the consolidation worksheet entries at 30 june 2019. Assume a profit for carl ltd for the year ended 30 june 2019 of $117300.
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