|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:|
|Asset revaluation surpluss||557000|
|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|
|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 method.|
|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 2020. Assume a profit for Davis Ltd for the year ended 30 June 2020 of $74000.|
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