Consolidations 1:

On 1 July 2021 Buzz Ltd acquired the shares of Debra Ltd for $29100. On the date of acquisition, the balance sheets of Buzz Ltd and Debra Ltd showed the following respectively:

The Company tax rate is 30%.

Required:

Complete the consolidation worksheet as at 1 July 2021.

Consolidation work sheet for your answer.

	Buzz Ltd	Debra Ltd		Adjustments			Group
Ac Acount				Dr	Cr
S Share capital
Ret Rained earnings
B BCVR
T Total equity
Def Derred Tax liability
To Total liabilities
De Deferred Tax Asset
Cas Cash at bank
Inv Investment in De bra Ltd
Go Goodwill
P Patent
Inventories
E Equipment
T Total assets

Buzz Ltd Balance Sheet as at 1 July 20214 Share capital $600002 Retained earnings $91002 1 1 1 Cash at bank Equipment Investment in Debra Ltda $100002 $300002 $291002 , Debra Ltd Balance Sheet as at 1 July 20214 Share capitale $30000 Retained earnings (Losses) ($5000) 11 Cash at bank $5000 Inventories (fair value is $6000) $20004 Patent (fair value is $17000) $180002