Alma Ltd acquired all the issued shares (ex div.) of Davis Ltd on July 1 2018 for $1811774. At this date Davis Ltd recorded a dividend payable of 36000 and equity of the following.

Share capital 634,000

Retained earnings 272,000

General reserve 217,000

All the identifiable assets and liabilities of Davis Ltd were recorded at amounts equal to their fair values at acquisition date except for the following;

Account Cost Carrying Amount Fair Value Further Life in Year Inventories $272,000 $490,000 Land $544,000 $979,000 Plant $761,000 $634,000 $1,141,000 4

Of the inventories, 96% was sold by 30 June 2019. The remainder was sold by 30 June 2020.

In May 2019, Davis Ltd transferred $108,500 from the General reserve at 1 July 2018 to a Retained earnings.

Tax rate: 30%

Required

1. Prepare the acquisition analysis at 1 July 2018.

2. Prepare the consolidation worksheet entries for Alma Ltds group at 30 June 2019.

Including supporting calculations.

Alma Ltd acquired all the issued shares (ex div.) of Davis Ltd on July 1 2018 for $1811774. At this date Davis Ltd recorded a dividend payable of 36000 and equity of the following. Share capital 634,000 Retained earnings 272,000 General reserve 217,000 All the identifiable assets and liabilities of Davis Ltd were recorded at amounts equal to their fair values at acquisition date except for the following: Account Cost Carrying Fair Value Further Amount Life in Year Inventories $272,000 $490,000 Land $544,000 $979,000 Plant $761,000 $634,000 $1,141,000 4 of the inventories, 96% was sold by 30 June 2019. The remainder was sold by 30 June 2020. In May 2019, Davis Ltd transferred $108,500 from the General reserve at 1 July 2018 to a Retained earnings. Tax rate: 30% Required 1. Prepare the acquisition analysis at 1 July 2018. 2. Prepare the consolidation worksheet entries for Alma Ltd's group at 30 June 2019. Including supporting calculations