Fremantle Ltd acquired all issued share capital of Margaret River Ltd on 1 July 2019 for a

cash payment of $650,000. The share capital and reserves of Margaret River Ltd at the date

of acquisition were:

Share capital $200,000

Retained earnings $300,000

All assets of Margaret River Ltd were fairly valued at the date of acquisition, except for a

plant that had a fair value $30,000 greater than its carrying amount. The cost of the plant was

$135,000 and it had accumulated depreciation of $85,000. At the date of acquisition it was

expected that the plant had a remaining useful life of ten years. There were no transactions

between Fremantle Ltd and Margaret River Ltd at the date of acquisition.

On 30 June 2024 Fremantle Ltd sold an item of plant to Margaret River Ltd for $300,000

when its carrying value, and original cost, in Fremantle's books was $450,000 and estimated

remaining useful life was three years. There were no other transactions between Fremantle

Ltd and Margaret River Ltd for year ended 30 June 2024.

1. Acquistion analysis and adjustment/ elimination journal entries for consolidation at 1 July 2019
2. Adjustment/ elimination journal entries for consolidation as at 30 June 2024