3 financial accounting

Swan Ltd has acquired 80% of the shares (ex div.) of Duck Ltd for $36,000 on 1 July 2019. At this date the Statement of Financial Position of Duck Ltd showed the following information: Cash Accounts receivable (net) Inventory Goodwill Plant (Cost $100,000) Land Carrying amount $60,000 25,000 15,000 5,000 90,000 23,000 Fair value $60,000 22,000 16,000 5,000 95,000 45,000 10,000 115,000 Accounts payable Dividend payable Debentures Share capital Retained earnings General reserve 45,000 10,000 115,000 30,000 15,000 3,000 The plant had a further useful life of 5 years. It was sold to Bubble Ltd on 1 June 2020 for $50,000 At 30 June 2020, a quarter the inventory was sold to entities outside the group. The balance was sold by 30 June 2021. The receivables of $22,000 had been collected by 30 June 2020. Additional information: (a) At the acquisition date, Duck Ltd has a contingent liability of $8,000 resulting from a legal claim from a customer. The probability for Duck Ltd to win the case is assessed to be 70%. (b) The tax rate is 30%. (c) The year-end for Swan Ltd and Duck Ltd is 30 June. Required Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Swan Ltd at 30 June 2021 in accordance with IFRS 3/ AASB 3 Business Combinations and IFRS 10/ AASB 10 Consolidated Financial Statements. Show all workings. Narrations for journal entries are required. Swan Ltd has acquired 80% of the shares (ex div.) of Duck Ltd for $36,000 on 1 July 2019. At this date the Statement of Financial Position of Duck Ltd showed the following information: Cash Accounts receivable (net) Inventory Goodwill Plant (Cost $100,000) Land Carrying amount $60,000 25,000 15,000 5,000 90,000 23,000 Fair value $60,000 22,000 16,000 5,000 95,000 45,000 10,000 115,000 Accounts payable Dividend payable Debentures Share capital Retained earnings General reserve 45,000 10,000 115,000 30,000 15,000 3,000 The plant had a further useful life of 5 years. It was sold to Bubble Ltd on 1 June 2020 for $50,000 At 30 June 2020, a quarter the inventory was sold to entities outside the group. The balance was sold by 30 June 2021. The receivables of $22,000 had been collected by 30 June 2020. Additional information: (a) At the acquisition date, Duck Ltd has a contingent liability of $8,000 resulting from a legal claim from a customer. The probability for Duck Ltd to win the case is assessed to be 70%. (b) The tax rate is 30%. (c) The year-end for Swan Ltd and Duck Ltd is 30 June. Required Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Swan Ltd at 30 June 2021 in accordance with IFRS 3/ AASB 3 Business Combinations and IFRS 10/ AASB 10 Consolidated Financial Statements. Show all workings. Narrations for journal entries are required