Undervalued assets, partial goodwill method  LO3, 4, 5 Noah Ltd purchased 75% of the issued shares of Cooper Ltd for $250 000 on 1 July 2013 when the equity of Cooper Ltd was as follows. Share capital $100 000 General reserve 60 000 Retained earnings 40 000 At this date, Cooper Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following assets. Carrying amount Fair value Inventories $ 70 000 $100 000 Plant (cost $170 000) 150 000 190 000 Land 50 000 100 000 All the inventories on hand at 1 July 2013 were sold by 30 June 2014. The plant has a remaining useful life of 10 years, with benefits to be received evenly over this period. Differences between carrying amounts and fair values are recognised in the consolidation worksheet. The NCI at acquisition date is measured based on the proportionate share of the identifiable assets and liabilities in Cooper Ltd. The tax rate is 30%. At 30 June 2019, the trial balances of Noah Ltd and Cooper Ltd are as follows. Noah Ltd Cooper Ltd Current assets $ 162 000 $ 84 000 Shares in Cooper Ltd 250 000 — Plant 425 500 190 000 Land 110 000 50 000 Cost of sales 225 000 35 000 Other expenses 65 000 7 000 Income tax expense 50 000 5 000 $1 287 500 $371 000 Share capital $ 400 000 $100 000 General reserve 60 000 80 000 Retained earnings (1/7/18) 120 000 75 000 Sales revenue 510 600 80 000 Payables 72 900 12 000 Accumulated depreciation — plant 124 000 24 000 $1 287 500 $371 000 Required 1. Prepare the acquisition analysis at acquisition date. 2. Prepare the business combination valuation entries and the 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 2014. Assume a profit for Cooper Ltd for the year ended 30 June 2014 of $40 000 and no other changes in Cooper Ltd’s equity since the acquisition date. 5. Prepare the consolidation worksheet entries at 30 June 2019. 6. Prepare the consolidated financial statements at 30 June 2019.