17 18 19 Griffin Ltd acquired all the issued shares (cum div.) in Python Ltd on 1 July 2020, paying 5905 000 cash. Costs incurred in undertaking the acquisition amounted to $7000, these did not relate to issuing the new shares. On 30 June 2020, the financial statement of Python Ltd showed the following balances: 20 21 Share capital (12,000 shares @ 50 each) $600,000 22 Retained earnings $270,000 23 24 Dividend payable Goodwill $36,000 $17,500 25 26 27 28 29 Plant (Cost $1,250,000) Carrying amount $60,000 $875,000 Fair value $52,000 $887,000 All the identifiable assets and liabilities of Python Ltd at the acquisition date were recorded at amounts equal to their fair values except for: Inventory 30 31 The assets recognised by Python Ltd did not include an internally generated patent of Python Ltd that was valued by Griffin Ltd at $28,000. 32 33 34 35 36 37 Assume that goodwill is accounted for as a Business Combination Valuation Reserve (BCVR) entry. using the worksheet provided below for the preparation of the consolidated financial statements of Griffin Ltd. Show the acquisition analysis as at 1 July 2020 and prepare the pre-acquisition consolidation worksheet at 30 June 2021, Its useful life was considered to be 4 years, with benefits being received equally over that period. 80% of the inventory on hand at the acquisition date was sold by 30 June 2021. The plant is expected to have a further useful life of 5 years. The tax rate is 30% Required: