On 1 July 2019 Alma Ltd acquired 92% the issued shares of Davis Ltd
On 1 July 2019 Alma Ltd acquired 94% the issued shares of Davis Ltd for $3716000 . The equity of Davis Ltd at this date consisted of: Share capital 1301000 Asset revaluation surpluss 557000 Retained earnings 446000 All the identifiable assets and liabilities of Davis Ltd were recorded at amounts equal to their fair values at acquisition date except for the following; Account Cost Carrying Amount Fair value Further life- in Year Inventories $557,000 $1,003,000 Land $1,115,000 $2,007,000 Machinery $1,562,000 $1,301,000 $2,342,000 8 Fittings $20,000 $20,000 8 Liabilities $50,000 $50,000 All inventories on hand at 1 July 2019 are sold by 30 June 2020. Further life of the assets are listed on the above table. Alma Ltd uses the partial goodwill…
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