ACCT7050 Written Assignment 2 Exercise 23-4 ( Adjusted version) Consolidation Workshcet Entries, Multiple Years, Partial Goodwill Method On July 1, 2012, Eagle Ltd, acquired 75\% of the issued shares of Heron Ltd. for $125,750. At this date, the accounts of Heron L.t. included the following balances: All the identifiable assets and liabilities of Heron Ltd. were recorded at fair value except for the? following: Adjustments for the differences between carrying amounts and fair values are to be made on consolidation. The plant has a further 5 -year life. 40% of the inventory was sold to outsiders by June 2013 while 60% of the inventory was sold to Eagle Ltd for \$18,000by June 30, 2014. Eagle Ltd. uses the partial goodwill method. During the 3 years sinee acquisition, Heron Lld. has recorded the following annual results and the dividend declared (declared on 30 June and paid on 15 July each year): Heron Ltd transferred \$5,000 from the general reserve to retained earnings on June 30, 2013. The group transfers the valuation reserves to retained earnings when an asset is sold or fully consumed and de-recognized. The tax rate is 30%. Required: 1. Prepare the Acquisition Analysis on 1 July 2012. 2. Prepare the consolidation workshect entries as at July I, 2012. 3. Prepare the consolidation worksheet entries for the year cnded June 30, 2013. 4. Prepare the consolidation worksheet entries for the year ended June 30, 2014. 5. Prepare the consolidation worksheet entries for the year ended June 30, 2015. ACCT7050 Written Assignment 2 Exercise 23-4 ( Adjusted version) Consolidation Workshcet Entries, Multiple Years, Partial Goodwill Method On July 1, 2012, Eagle Ltd, acquired 75\% of the issued shares of Heron Ltd. for $125,750. At this date, the accounts of Heron L.t. included the following balances: All the identifiable assets and liabilities of Heron Ltd. were recorded at fair value except for the? following: Adjustments for the differences between carrying amounts and fair values are to be made on consolidation. The plant has a further 5 -year life. 40% of the inventory was sold to outsiders by June 2013 while 60% of the inventory was sold to Eagle Ltd for \$18,000by June 30, 2014. Eagle Ltd. uses the partial goodwill method. During the 3 years sinee acquisition, Heron Lld. has recorded the following annual results and the dividend declared (declared on 30 June and paid on 15 July each year): Heron Ltd transferred \$5,000 from the general reserve to retained earnings on June 30, 2013. The group transfers the valuation reserves to retained earnings when an asset is sold or fully consumed and de-recognized. The tax rate is 30%. Required: 1. Prepare the Acquisition Analysis on 1 July 2012. 2. Prepare the consolidation workshect entries as at July I, 2012. 3. Prepare the consolidation worksheet entries for the year cnded June 30, 2013. 4. Prepare the consolidation worksheet entries for the year ended June 30, 2014. 5. Prepare the consolidation worksheet entries for the year ended June 30, 2015