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%


  1. Prepare the acquisition analysis at acquisition date.
  2. Prepare the business combination valuation entries and pre-acquisition entry at acquisition date.
  3. Prepare the journal entry to recognise NCI at acquisition date.
  4. 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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