acc204 accounting question is attached

0 Nina Lid purchased 98% of the issued shares of Carl Lid for $650000 on 1 July 2018 when the equity of Carl Ltd was as follows; Share capital 260000 General reserve 195000 Asset revaluation surpluss 97500 At this date, Carl Lid had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; 5 Account Cost Carrying 6 Fair value Further Amount life ( Years) Inventories $19,500 $21,500 8 Land $49,000 $54,000 9 Machinery $75,000 $60,000 $72,000 related to a lawsuit where Carl Ltd was sued by a former 10 supplier $8,000 Carl Lid had unrecorded and internally generated Patent with the FairValue of: $20,000 Carl Lid had unrecorded and internally generated in-process research and development with the FairValue of: $15,000 60% of inventory on hand at 1 July 2018 were sold by 30 June 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30% 4 15 Required 6 1- Prepare the acquisition analysis at acquisition date. 2- Prepare the business combination valuation entries and pre-acquisition entry at acquisition date. 8 3- Prepare the journal entry to recognise NCI at acquisition date. 19 4-Prepare the consolidation worksheet entries at 30 June 2019. Assume a profit for Carl Ltd for the year ended 30 June 2019 of $35300. 0 5- Explain how the step 1 to 4 will change if the full goodwill method is used. 6. List and explain the accounting standards issues relevant to the consolidation process. 32 7. Compare in detail the current situation with the case that Nina Ltd acquires only 20% of issued shares of Carl Ltd with a significant influence on Carl Ltd.0 Nina Lid purchased 98% of the issued shares of Carl Lid for $650000 on 1 July 2018 when the equity of Carl Ltd was as follows; Share capital 260000 General reserve 195000 Asset revaluation surpluss 97500 At this date, Carl Lid had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; 5 Account Cost Carrying 6 Fair value Further Amount life ( Years) Inventories $19,500 $21,500 8 Land $49,000 $54,000 9 Machinery $75,000 $60,000 $72,000 related to a lawsuit where Carl Ltd was sued by a former 10 supplier $8,000 Carl Lid had unrecorded and internally generated Patent with the FairValue of: $20,000 Carl Lid had unrecorded and internally generated in-process research and development with the FairValue of: $15,000 60% of inventory on hand at 1 July 2018 were sold by 30 June 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30% 4 15 Required 6 1- Prepare the acquisition analysis at acquisition date. 2- Prepare the business combination valuation entries and pre-acquisition entry at acquisition date. 8 3- Prepare the journal entry to recognise NCI at acquisition date. 19 4-Prepare the consolidation worksheet entries at 30 June 2019. Assume a profit for Carl Ltd for the year ended 30 June 2019 of $35300. 0 5- Explain how the step 1 to 4 will change if the full goodwill method is used. 6. List and explain the accounting standards issues relevant to the consolidation process. 32 7. Compare in detail the current situation with the case that Nina Ltd acquires only 20% of issued shares of Carl Ltd with a significant influence on Carl Ltd