High.-Tach Lid acquired B5% interest in Chat. Smart Lid on 30 June 2023 Lr 5850,000, when all assets of Chat Smart Ltd were at fair value, except for land that was undervalues by $50,000. Share capital and reserves of Chat Smart Ltd were:

Share Capital

$500,000

Retained earnings

$350,000

The management of High-Tech Lid measures any non-controlling interest (NCI) in Chat Smart Ltd at fair value (full goodwill method). High-Tech Ltd has investment in other companies. Tax rate is 30%. Reporting date is 30 June.

 Provide an acquisition analysis as at 30 June 2023, to determine goodwill or gain on bargain purchase at acquisition. (7 marks) 

 Provide all consolidation/elimination journals as at 30 June 2023. (Narrations are required) (3 marks)

 High-Tech Lid owns 50% of Orange Grove Lid's ordinary shares. The remaining 50% of Orange Grove Ltd's ordinary shares are owned by Wilson Ltd. High-Tech Lid and Wilson Lid have four seats on the board, with no party having the casting vote. However, Wilson Ltd appoints the managing director. Profits are split 50-50 after the provision of the managing director's salary. High-Tech Ltd is the only holder of 10,000 options in Orange Grove Ltd, which are exercisable at any time at a 10% discount to the fair value of the ordinary shares at the exercise date.

Should High-Tech Ltd consolidate Orange Grove Ltd? Be sure to justify your decision with an explanation of why or why not? (2 marks)