AutoSave ACC204-Saved to my Mac Home Insert Draw B 81 Page Layout Formulas Data xfx 12001947 Review View Tell me A D G M 10 Sima Ltd purchased all issued shares of Nima Ltd for $2297000 on 1 July 2020 when the equity of Nima Ltd was as follows; 11 12 Share capital 13 Asset revaluation surplus 918800 689100 14 Retained earnings 344550 15 16 Account 17 Inventories 18 and At this date, Nima Ltd had not recorded any goodwill, and all identifiable assets and abilities were recorded at fair value except for the followings Cost Carrying Amount Fair value Further fe(Years) $68,900 $75,800 $172,000 $189,000 19 Equipment $267,500 $214,000 $257,000 Contingent Liability 20 Nima Lnd identified at acquisition date a lawsuit where Nima Ltd was sued by a former supplier with the Fainvalue of $28,000 Unrecorded Asset 21 Nima Ltd had unrecorded and internally generated Patent with the FairValue of $65,000 Unrecorded Asset Nima Ltd had unrecorded and internally generated in 22 process research and development with the FairValue of $52,000 23 24 Tax rate 30% Required 25 1.Prepare the acquisition analysis at acquisition date. 26 2.Prepare the business combination valuation entries and the pre-acquisition entry at acquisition date. 27 3.Prepare worksheet adjusting journal entries for the consolidation on 30 June 2021, considering 90% of inventory were sold by 30 June 2021 and no other changes in Nima's equity since the acquisition date 4. If Sima Ltd purchased just 97% of the issued shares of Nima Ltd on 1 July 2020 and partial goodwill method is in use, Prepare the acquisition analysis at acquisition date 29 5. Prepare worksheet adjusting journal entries for the consolidation at acquisition date. 30 6- Explain in details; 31 a)What is consolidation according to accounting standards? b)What are consolidated financial statements? How to prepare consolidated financial statements? 33 c)Why is it necessary to make consolidated worksheet adjustments? 34 d)How often is it necessary to make consolidated worksheet adjustments? e)Where should the consolidated worksheet adjustments be posted? is there any difference between consolidation for wholly owned entities and NCI 35 3