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i am not sure about this question can i get some help? thank you Question 11.9 On I July 2019, Gilberts Ltd acquired all the

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i am not sure about this question can i get some help? thank you

image text in transcribed

Question 11.9 On I July 2019, Gilberts Ltd acquired all the issued shares (cum div.) of Potoroo Ltd for Require (a) Prepare consolidated worksheet entrtes for Gllberts Ltd at 30 June 2020. e (b) Dlscuss concept of realisation usmg the intragroup transactions in fig question to your ansv.er_ 000 _ At this date the equlty ofPotoroo Ltd cons1Sted of-.e Share capital Retained earn ngs "5 ooo At this date, Potoroo Ltd had recorded a dlvldend payable of S 700 which was paid m August 2019. All the identifiable assets and liabilitia ofPotoroo Ltd were recorded at amounts equal to fair values except for Inventor; for uilich the fair value was SIOOO zeater ffan carrymg amount Only 10% ofthe inventory on hand at I July 201 g remained unsold by SO June 2020. The tax rate 30%e During the 201 g20 period, the following transactions occurred. (a) Gilberts Ltd gold Inventory to PotorooLtd for 530 000 at a profit before tax of $6000_ At 30 June 2020: In-.entory which was sold to Potoroo Ltd for $12 at a profit before tax of S2_500 was still on hand in the records of Potoroo Ltd. (b) On I January 2020, Gilbeltg Ltd sold machinery to Potoroo Ltd at a gain of 5000. The machmety was considered to have a further 5-year life (c) During the period Ltd rented a warehouse from Gllberts Ltd, paying S 1250 in rent to Gilberts Ltd. (d) During the period Gilberts Ltd recorded gams from revaluation of land: which ig measured using the fair value method. These gains increased the asset revaluation surplus by 32000 to give a balance of S14 000 at SO June 2020. (e) In June 2020: an mapa:mrnt test wag conducted on Potoroo Ltd and resulted m the recognition of Impairment losses on goodwill of SSOCO (recognised in offer expenses The following financial Information was provided by fre companies at 30 June 2020:e Other On Of g-setS of Total e profit tax Income tax expvse Profit the earnings Gvidend C3C'6QO GilbtS Ltd (52 1 ooco (3 375) 1 soco (6 SIS375 (45 u)0) 21 soo 16625 24125 (2 500) $21 625

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