accrue: GRDUP CASE STUDY On 1 July 2013 Tom Limited aoqulred all of the share capital of Harry Limited for a consideration of ssoomo cash. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of: HSSET Inventory Land Plant {less oepnj Acou nts Receivable The inventory was all sold by EDfd. The remaining useful life of the plant is 3" years. The aocou nts receivable were collected by 30M!\" for stones The land was sold on 31131316 for 532,000. The plant was on hand still at anyone. At the date of acquisition the equity of Harry Ltd consisted of: Share Eapital General Reserve Retained Earnings Information trorn the trial balances of Tom Ltd and Harry Ltd at 301mm 201? is presented overleaf. ditlo I In r n 1. 0n 1 Jan Zl? Harry Ltd sotd inventory to Tom Ltd costing szspoo for Sdm. Half of this inventory was sold to outside parties for $23,000 by Buff. 2. 0n 1 Jan zdlE Harry Ltd sold inventory costing 53000 to Torn Ltd for 511000. Torn Ltd treats the item as equip merit and depreciate; it at 5% per ann urn. 3.Dn ljuly 21116 Harry sold plant to Tom for $?;DUU. The plant had cost Harryr $3,0UU on 1 July 2014 and It was being depreciated at 10% per an nurn. Tom regards the plant as Inventory. The inventory was all sold by 30th luly 2016. 4. At 1 My 21d Harry Ltd held Inventory that it had purchased from Torn Ltd on 1 June ll at a prot of 54mm All inventory was sold by 30 June 101? 5. Tom Ltd accrues dividends from Harry Ltd once they are declared. 6. Tom Ltd has earn ed $12M in interest revenue in the 101? financial year from Harry Ltd. 7. Tom Ltd has earned 5240121 in service revenue in the 201? ne nclal year from Harry Ltd. 3. Assume a tax rate of 30%. Trial Balances W H 5 Harry ltd {'1 w E 1.250.000 Cost of Sale: 945.500 393500 _ EHMMMMMEIIIIIIEEIIIIIlllmIllll mm O'iar Exp-arm 4mg} 5.000 mm mu Dividend \"Mlle Imam tax a _1'ME Retalned Earni .;. il' Dividend Paid Dividend Dachmd llll Ill Cr ; !||!|! 92.12 Bil! 100.32 mag? p !g!!ll!ll ll'} 12mm Luna eneml Reserve the-r Equitr 1mm alns an Flnanclal Assam Loan Payableto Turn ltd DeferredTax lJabil _ Dividend Parable SM res in Ha 1rd l-I LIJ 5"" ! E \"E E lmn'eurles Other mmntnssets Dividend Receivable Loan receivable from H: Ltd nancial Assets Plant and E I I! mt Art. De_- redatlan Plant m: . m m _ _ m 45.:1 mom} 1.102.529 Ml llgllllllll! E 2.102.920 1.258.580 1.263