10 Minoo Ltd purchased all the issued shares of Sina Ltd for $1850000 on 1 July 2021 when the equity of Sina Ltd was as follows; 11 12 Share capital 13 Retained earnings 740000 555000 14 General reserve 277500 At this date, Sina Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; 15 Account 16 17 Inventories 18 Land 19 Plant Further Cost Carrying Amount Fair value life(Years) $55,500 $61,100 $139,000 $153,000 $215,000 $172,000 $206,000 Sina Ltd identified at acquisition date a lawsuit Contingent Liability where Sina Ltd was sued by a former supplier 20 with the Fairvalue of: $22,000 Sina Ltd had unrecorded and internally 221 Unrecorded Asset 21 generated Patent with the FairValue of: $56,000 Sina Ltd had unrecorded and internally Unrecorded Asset 22 23 generated in-process research and development with the FairValue of: $42,000 4 25 Required 26 1.Prepare the acquisition analysis at acquisition date. 27 2.Prepare the business combination valuation entries and the pre-acquisition entry at acquisition date. 28 3.Prepare worksheet adjusting journal entries for the consolidation on 30 June 2022, considering 70% of inventory were sold by 30 June 2022 and no other changes in Sina's equity since the acquisition date. 29 4-In relation to the following intragroup transactions during the year ended 30 June 2022, prepare adjusting journal entries for the consolidation worksheet at 30 June 2022. 30 a. Sina Ltd sold a motor vehicle to Minoo Ltd for $71000. This had a carrying amount to Sina Ltd of $69580. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost. 31 b. Minoo Ltd sold inventories to Sina Ltd for $83000 on credit, recording a profit of $16600. Half of the inventories were unsold by Sina Ltd at 30 June 2022. 32 c. Sina Ltd sells inventories to Minoo Ltd for $91000 in cash. These inventories had previously cost Sina Ltd $63700, and remain unsold by Minoo Ltd at the end of the period. 33 d. Minoo Ltd sells inventories to Sina Ltd for $85000 in cash (original cost to Minoo Ltd was $59500) and 80% are sold externally by 30 June 2022. 34 e. Sina paid $12000 dividend. 5. If Minoo Ltd purchased just 98% of the issued shares of Sina Ltd for $1850000 on 1 July 2021, partial goodwill method is under use and the NCI at acquisition date is measured based on the 35 proportionate share of the identifiable assets and liabilities in Sina Ltd. 36 a. Prepare the acquisition analysis at acquisition date. 37 b. Prepare the business combination valuation entries and pre-acquisition entry at acquisition date. 38 c. Prepare the journal entry to recognise NCI at acquisition date. 39 6. Explain in details; 40 a. What is consolidation according to accounting standards? 41 b. What are consolidated financial statements? How to prepare consolidated financial statements? 42 c. Why is it necessary to make consolidated worksheet adjustments? 43d How different consolidation for wholly owned entities and NCL are