Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assignment Question 170,000 On 01 July 2020, Walker Ltd acquired all the issued shares of Moss Ltd for $ The equity of Huong at this

image text in transcribed

Assignment Question 170,000 On 01 July 2020, Walker Ltd acquired all the issued shares of Moss Ltd for $ The equity of Huong at this date is as follows: Share capital $ Retained earnings 65000 41000 All the identifiable assets and liabilities of Moss Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventory Equipment (the cost is: Carrying amount 34000 30000 Fair value 35500 35000 36000) 2 years The equipment was considered to have a further useful life: of the inventory 80% was sold by 30 June 2021. The following information was provided by the two companies at 30 June 2021. Moss Profit before tax Income tax expense Profit for the year Retained earnings (01/07/2020) Retained earnings (c30/06/2021) Share capital Retained earnings General reserve Asset revaluation surplus liabilities Walker 97000 56000 41000 80000 121000 360000 121000 10000 18500 128500 638000 121000 402000 -110000 55000 170000 638000 12500 4200 8300 41000 49300 65000 49300 0 0 22000 136300 20000 130600 -33000 18700 0 136300 Land Plant and Equipment Accumulated depreciation inventory Investment in Moss In addition, there are some intra-group transactions between Walker and Huong shown below: a. During the year, Walker sold inventory costing 3500 to Moss for 4200. At the end of the year, 30% of the inventory is still held on hand by Huong. b. on 1 July 2020, Moss sold a plant to Walker. The plant has carrying amount of 120,000 . Moss sold it to Walker for 130,000 The remaining useful life is estimated to be 5 years. Required Prepare the Acquisition analysis, consolidation adjustments, consolidation rkshe and consolidated financial statements Manufacturing Ltd at 30 June 2021 Marks Mark allocation Acquisition analysis Adjustments Worksheet Consolidated financial statements Total Out of 20 19 37 16 18 80

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics Education Making Ethics Real

Authors: Alberto J. Costa, Margarida M. Pinheiro

1st Edition

1032019999, 9781032019994

More Books

Students also viewed these Accounting questions

Question

What are the Companys reason for going Public?

Answered: 1 week ago