High Ltd purchased 75% of the issued shares of Low Ltd for $260,000 on 1 July 2013 when the equity

of Low Ltd was as follows:

Share capital	$100,000
General reserve	60,000
Retained earnings	40,000

At this date, Low Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following assets:

	Carrying amount	Fair value
Inventory	$75,000	$100,000
Plant (cost $170,000)	150,000	190,000
Land	60,000	100,000

	High Ltd		Low Ltd
Debit balances: Current assets
	$162,000		$74,000
Shares in Low Ltd	260,000		-
Plant	425,500		190,000
Land	110,000		60,000
Cost of sales	225,000		32,000
Other expenses	65,000		8,000
Income tax expense	50,000		16,000
	1,297,500		380,000
Credit balances: Share capital
	400,000		100,000
General reserve	60,000		80,000
Retained earnings (1/7/18)	120,000		75,000
Sales revenue	510,600		89,000
Trade payables	82,900		12,000
Accumulated depreciation - plant	124,000		24,000
	1,297,500		380,000

At 30 June 2019, the trial balances of High Ltd and Low Ltd are as follows:

All the inventory on hand at 1 July 2013 was sold by 30 June 2014. The plant has a remaining

useful life of 10 years, with benefits to be received evenly over this period. Any adjustments for differences between carrying amounts at acquisition date and fair values are made on consolidation. The tax rate is 30%.

Assume a profit for Low Ltd for the year ended 30 June 2014 of $35,000 and no other changes in Low Ltds equity since the acquisition date.

During the 2018-2019 period, Low Ltd sold inventory to High Ltd for $14,000. This inventory had cost Low Ltd $9,000. At 30 June 2019, one-fifth of this inventory still remained in High Ltd.

Required:

1. Determine the gain on bargain purchase or goodwill as at acquisition date using the full goodwill method. Assume the fair value of the Non-controlling interest at 1 July 2013 was

$77,100.

2. Determine the gain on bargain purchase or goodwill as at acquisition date using the partial goodwill method.

3. Prepare the consolidation journal entries for High Ltd using the partial goodwill method at 1 July 2013, immediately after acquisition.

4. Prepare the consolidation journal entries for High Ltd using the partial goodwill method at 30 June 2014.

5. Prepare the consolidation journal entries for High Ltd using the partial goodwill method at 30 June 2019.

Note: Your consolidation journal entries for Required 5 should be prepared in the following format:

1. Business combination valuation entries at 30 June 2019
2. Pre-acquisition entries at 30 June 2019
3. NCI share of equity at 1 July 2013
4. NCI share of equity changes from 1 July 2013 to 30 June 2018
5. NCI share of equity changes from 1 July 2018 to 30 June 2019
6. Intragroup transaction adjustments required as at 30 June 2019

6. Prepare the consolidation worksheet for the preparation of the consolidated financial statements as at 30 June 2019.

7. Prepare the following financial statements as at 30 June 2019:
   1. Consolidated statement of profit or loss and other comprehensive income;
   2. Consolidated Statement of financial position;
   3. Consolidated Statement of changes in equity.