How to get page #7 goodwill=2360 need steps with explanations

Clutions manual to accompany Financial reporting 3e by Loftus et al. Not for distribution in full. Instructors y past selected solutions for questions assigned as homework to their LMS. Erercise 27.15 valued and unrecorded assets, unrecorded liabilities, pre-acquisition reserves Underva transfers on 1 used the fair value method to measure this investment with movements in fair value being recognised in profit or loss. At 1 July 2021, the fair value of this investment was $15 400. The original investment in Sherran Ltd was due to the fact that Sherran Ltd s undertaking research into particular microbiological elements that could influence the profitability of Ed Ltd. With the continuing success of this research, Ed Ltd decided to acquire the remaining shares (cum div.) in Sherran Ltd. On 1 July 2021, Ed Ltd made an offer to buy the remaining shares in Sherran Ltd for was S151 000 cash. This offer was accepted by the shareholders of Sherran Ltd. On 1 July 2021 , immediately after the business combination, the statement of financial position of Sherran Ltd was as follows. Ed Ltd Sherran Ltd Share capital $ 130 000 $ 90 0001 General reserve 56 500 12 000 2 Retained earnings 93 500 36 0003 Total equity S 280 000 $ 138 000 Dividend payable 25 000 12 600 b Other liabilities 75 000 25 000 Total liabilities S 100 000 $ 37 600 $ 175 600 Total equity and liabilities 380 000 $ 11 000 20 600 Cash 25 200 20 000 Receivables 10 000 8 000 Other assets 153 800 0 Shares in Sherran Ltd 55 000 42 000 Inventories 210 000 107 000 Plant and equipment (85000) (22 000) Accumulated depreciation - plant and equipment $ 380 000 $ 175 600 Total assets On analysing the financial statements of Sherran Ltd, Ed Ltd determined that all the valets and liabilities recorded by Sherran Ltd were shown at amounts equal to their fair values except for the following. Chapter 27: Consolidation: wholly owned entities Fair value Carrying amount $35 000 42000 $43000 46000 Plant and equipment (cost $46000) Inventories The plant and equipment is expected to have a further 4-year useful life and is depreciated on a straight-line basis. The inventories were all sold by 30 June 2022. Sherran Ltd had expensed all the outlays on research and development. Ed Lid considered that an asset was created and placed a fair value of $12 000 on this asset. The research and development is amortised evenly over a 10-year period. Sherran Ltd also had reported a contingent liability at 30 June 2021 in relation to claims by customers for damaged goods. Ed Ltd placed a fair value of $3000 on these claims. The claims by customers were settled in May 2022 for $2800. The tax rate is 30%. Required 1. Prepare the consolidated financial statements for Ed Ltd's group at 1 July 2021. 2. Prepare the consolidation worksheet entries for Ed Ltd's group at 30 June 2022. (L04 and LO5) 1. Consolidated financial statements for Ed Ltd's group at 1 July 2021: Acquisition analysis at 1 July 2021: Net fair value of identifiable assets and liabilities of Sherran Ltd = ($90 000+ $12 000 + S36 000) (equity) + (S43 000 - $35 000) (1 - 30%) (BCVR-plant) + ($46 000 - $42 000) (1 - 30%) (BCVR-inventories) 4+ $12.000 (1 - 30%) (BCVR-R&D) - $3.000 (1 - 30%) (BCVR-claims) = $152 700 Net consideration transferred = 5151 000 $12 600 (dividend) $138 400 Previously acquired equity interest = $15 400 Goodwill = ($138 400+ $15 400) - $152 700 = $1 1009 "Note that the net consideration transferred (that together with the fair value of previously held interest gives the balance of the 'Shares in Sherran Ltd' account at of 1 July 2021. ie. 360-n) 155 060 Transfer from BCVR Business combination valuation reserve Dr Cr 2 800 2 800 Business combination valuation reserve Transfer from BCVR Dr Cr 2 100 2 100 27.77 und Sons Australia Ltd, 2020