Hi Team

Grateful if you can assist me in answering the attached question.

Regards

Jeanela Nelson

ACCT 3041 ADVANCED ACOUNTING ASSIGNMENT # 1 COMPEHENSIVE PROBLEM 1 WEIGHT - 10% OF FINAL GRADE DUE WEDNESDAY OCT 11 AT 11: 55 PM EC TIME This is an individual problem solving effort. Palate Company acquires an 80% interest in Suntan Company for $250,000in cash on January 1, 2015, when Suntan Company has the following balance sheet: Assets Current Assets Depreciable Property Plant & Equipment Total Assets Amount $100,000 200,000 Liabilities and Equity Current Liabilities Common Stock ($10 Par) Amount $50,000 100,000 $300,000 Retained Earnings Total Liabilities and Equity 150,000 $300,000 Any excess of the price paid over book value is attributable only to the fixed assets, which have a 10 years remaining life. Palate Company uses the simple equity method to record its investment in Suntan. The following trial balances of the two companies are prepared on December 1 2015: Current Assets Depreciable Property Plant & Equipment Accumulated Depreciation Investment in Suntan Current Liabilities Common Stock ($10 par0 Retained Earnings January 1, 2015 Sales Expenses Subsidiary Income Dividends Declares Totals PALATE $60,000 400,000 (106,000) 266,000 (60,000) (300,000) (200,000) (150,000) 110,000 (20,000) 0 SUNTAN $130,000 200,000 (20,000) (40,000) (100,000) (150,000) (100,000) 75,000 5,000 0 Required: 1. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet. 2. Calculate the goodwill arising on the acquisition of Suntan at January 1, 2015 3. Calculate the carrying amount of the investment in Suntan at December 31, 2015, before the impairment test. 4. Prepare the consolidated Statement of Financial Position of the Palate Group for the year ended December 31, 2015/ You may use either the consolidated worksheet approach or the tabular approach. However, your final solution must be presented in accordance with IAS 1 - Presentation of Financial Statements NB: You are required to apply IFRS 3 (Revised) \"Business Combinations\" and IFRS 10 'Consolidated Financial Statements' where necessary