Financial information at 30 June 2020 of Great Ltd and its subsidiary company, Wall Ltd, is shown below.

At 1 July 2017, the date Great Ltd acquired its 80% shareholding in Wall Ltd, all the identifiable assets and liabilities of Wall Ltd were at fair value except for the following assets:

Carrying amount Fair value

Plant (cost $75,000) $49,000 $55,000

Land 29,000 37,000

The plant has an expected life of 10 years, with benefits being received evenly over that period. Differences between carrying amounts and fair values are adjusted on consolidation. The land on hand at 1 July 2017 was sold on 1 February 2018 for $40,000. Any valuation reserve in relation to the land is transferred on consolidation to retained earnings.

Great Ltd uses the full goodwill method. The fair value of the non-controlling interest at 1 July 2017 was $31,500.

Great Ltd Wall Ltd

Sales revenue $316000 $220,000

Other revenue:

Debenture interest 5,000 -

Management and consulting fees 5,000 -

Dividend from Wall Ltd 12,000 -

Total revenues 338,000 220,000

Cost of sales 130,000 85,000

Manufacturing expenses 90,000 60,000

Depreciation on plant 15,000 15,000

Administrative 15,000 8,000

Financial 11,000 5,000

Other expenses 14,000 12,000

Total expenses 275,000 185,000

Profit before tax 63,000 35,000

Income tax expense (25,000) (17,000)

Profit 38,000 18,000

Retained earnings (1/7/19) 50,000 45,000

88,000 63,000

Transfer to general reserve 3,000 -

Interim dividend paid 10,000 10,000

Final dividend declared 10,000 5,000

23,000 15,000

Retained earnings (30/6/20) 65,000 48,000

General reserve 50,000 10,000

Other components of equity 13,000 10,000

Share capital 300,000 100,000

Debentures 200,000 100,000

Current tax liability 25,000 17,000

Dividend payable 10,000 5,000

Deferred tax liability - 7,000

Other liabilities 90,000 12,000

$753,000 $309,000

Financial assets $50,000 $60,000

Debentures in Wall Ltd 100,000 -

Shares in Wall Ltd 131,600 -

Plant (cost) 120,000 102,000

Accumulated depreciation - plant (65,000) (55,000)

Other depreciable assets 76,000 55,000

Accumulated depreciation (40,000) (25,000)

Inventory 90,000 85,000

Deferred tax asset 85,400 30,000

Land 201,000 57,000

Dividend receivable 4,000 -

$753,000 $309,000

Additional information

1. At the acquisition date of 80% of its issued shares by Great Ltd, the equity of Wall Ltd was:

Share capital (100,000 shares) $100,000

General reserve 3,000

Retained earnings 37,000

1. Inventory on hand of Wall Ltd at 1 July 2019 included a quantity priced at $10,000 that had been sold to Wall Ltd by its parent. This inventory had cost Great Ltd $7,500. It was all sold by Wall Ltd during the year.
2. In Great Ltd's inventory at 30 June 2020 were various items sold to it by Wall Ltd at $5,000 above cost.
3. During the year, intragroup sales by Wall Ltd to Great Ltd were $60,000. It was also learned that Wall Ltd had sold to Great Ltd an item from its inventory for $20,000 on 1 January 2019. Great Ltd had treated this item as an addition to its plant and machinery. The item was put into service as soon as received by Great Ltd and depreciation charged at 20% p.a. The item had been fully imported by Wall Ltd at a landed cost of $15,000.
4. Management and consulting fees derived by Great Ltd were all from Wall Ltd and represented charges made for administration $2,200 and technical services $2,800. The latter were charged by Wall Ltd to manufacturing expenses.
5. All debentures issued by Wall Ltd are held by Great Ltd.
6. Other components of equity relate to movements in the fair values of the financial assets. The balance of this account at 1 July 2019 was $10,000 (Great Ltd) and $8,000 (Wall Ltd).
7. The tax rate is 30%.

Required:

Section 1

a)Conduct the acquisition analysis.

b)Prepare the consolidation journals as at 30 June 2020.

c)What is the total amount of non-controlling interests?

d)What is the total amount of Business Combination Revaluation Reserve (BCVR) shown in the group account?

e)What is the total amount of Goodwill shown in the group account?