ChallengeMe Pty Ltd acquired 100 per cent of the issued capital of TakeItEasy Ltd on 30 June 2018 for $900 000, when the statement of financial position of TakeItEasy Ltd was as follows: Additional Information: Tax rate is 30 per cent As at the date of acquisition, all assets of TakeItEasy Ltd were at fair value, other than the property, plant and equipment, which had a fair value of $530 000. TakeItEasy Ltd adopts the cost model for measuring its property, plant and equipment. The property, plant and equipment is expected to have a remaining useful life of 10 years, and no residual value. One year following acquisition it was considered that TakeItEasy Ltds goodwill had a recoverable amount of $60 000. TakeItEasy Ltd declared a dividend of $40 000 on 10 July 2018, with the dividends being paid from pre-acquisition retained earnings. Statement of financial position TakeItEasy Ltd as at 30 June 2018 $('000) $('000) Assets Liabilities Accounts receivable Loan 300 70 Inventory 100 Land 400 Shareholders' equity Property, plant and equip 700 Share Capital 500 Accumulated depreciation (270) Retained Earnings 200 1,000 1,000 ACT 503 Corporate Accounting Assignment Due Date: 11.59 pm Friday 29th September in Study Week 10 Page | 7 The statements of financial position and statements of comprehensive income of ChallengeMe Pty Ltd and TakeItEasy Ltd one year after acquisition are as follows: Required: Provide the consolidated accounts of ChallengeMe Pty Ltd and TakeItEasy Ltd as at 30 June 2019 with the following: Acquisition analysis show relevant calculations All relevant worksheet journal entries o Fair Value of assets adjustment o Pre-acquisition eliminating entries Consolidated worksheet for ChallengeMe Pty Ltd and its controlled entity for the period ending 30 June 2019 showing columns of Eliminations and adjustments and consolidated amounts Consolidated statement of financial position of ChallengeMe Group. Hard work pays off. Good Luck Statement of financial position of ChallengeMe Pty Ltd and TakeItEasy LTd as at 30 June 2019 ChallengeMe Pty Ltd ($000) TakeItEasy Ltd ($000) Assets Cash 80 40 Accounts receivable 50 50 Inventory 140 123 Land 600 400 Property Plant and equipment 900 700 Accumulated depreciation (300) (313) Investment in Beach Ltd 900 - Total non-current assets 2,370 1,000 Liabilities Accounts payable 100 10 Dividends payable 100 50 Loan 670 140 Shareholders' equity Share capital 1,000 500 Retained earnings 500 300 Total shareholders' equity 1,000 2,370 Reconciliation of opening and closing retained earnings Profit after tax 400 190 Retained earnings -- 30 June 2018