442.950 Retained Earnings 78 000) TOTAL LIABILITIES&OWNER'S EQUITY 52, 180,950 _$1,092.000 Required: QUESTION #325 MARKS) The X Company on December 31, 2020 purchased 80% of the Y Company for $800,000 plus they made an agreement to pay an additional $80,000 in two years if sales grew by more than 30% over the two year period. An independent appraiser stated that the contingent consideration could have been settled by paying $30,000 at the date of acquisition. On this date the inventory of Y had a fair value of321,250, land had a fair value of $136,500 and plant and equipment had a fair value of $546,00. Calculate the goodwill on consolidation (6marks) Prepare the consolidated balance sheet at the date of acquisition 15 marks) iii Assume that the accountants of X used the working paper method to prepare the consolidated balance, prepare the eliminating entry at acquisition under this method(4) The balance sheets of X and Y at December 31st 2020, are given below:- v $ 19,500 171.950 175,500 136,500 78 Cash 5 9,750 Accounts receiv 68,250 Inventory 312,000 Land 000 Plant & Equipment Investment in Y Goodwill 58,500 TOTAL ASSETS 602.000 900,000 565,500 0... 175,500 $2.180.950 $1.092.000 $.234.000 $1 Current liabilities 56,000 Long term debt 429,000 Common shares 585.000 724,000 780,000 442.950 Retained Earnings 78 000) TOTAL LIABILITIES&OWNER'S EQUITY 52, 180,950 _$1,092.000 Required: QUESTION #325 MARKS) The X Company on December 31, 2020 purchased 80% of the Y Company for $800,000 plus they made an agreement to pay an additional $80,000 in two years if sales grew by more than 30% over the two year period. An independent appraiser stated that the contingent consideration could have been settled by paying $30,000 at the date of acquisition. On this date the inventory of Y had a fair value of321,250, land had a fair value of $136,500 and plant and equipment had a fair value of $546,00. Calculate the goodwill on consolidation (6marks) Prepare the consolidated balance sheet at the date of acquisition 15 marks) iii Assume that the accountants of X used the working paper method to prepare the consolidated balance, prepare the eliminating entry at acquisition under this method(4) The balance sheets of X and Y at December 31st 2020, are given below:- v $ 19,500 171.950 175,500 136,500 78 Cash 5 9,750 Accounts receiv 68,250 Inventory 312,000 Land 000 Plant & Equipment Investment in Y Goodwill 58,500 TOTAL ASSETS 602.000 900,000 565,500 0... 175,500 $2.180.950 $1.092.000 $.234.000 $1 Current liabilities 56,000 Long term debt 429,000 Common shares 585.000 724,000 780,000