If sima ltd purchased just 90% of the issued shares if Nima ltd on 1 july 2020 and partial goodwil method is in use, Prepare the acquisition analysis at acquisition date.

Prepare worksheet adjusting journal entries for the consolidation at acquisition date.

Explain in details ;

a. what is consolidation according to accounting standards?

 

Sima Ltd purchased all issued shares of Nima Ltd for $1900000 on 1 July 2020 when the equity of Nima Ltd was as follows; 1 2 Share capital 3 Asset revaluation surplus Retained earnings At this date, Nima Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings Account Inventories Land Planti Contingent Liability Unrecorded Asset Unrecorded Asset Tax rate:30%. 760000 570000 285000 Cost Carrying Amount $57,000 $143,000 $177,000 $221,250 Nima Ltd identified at acquisition date a lawsuit where Nima Ltd was sued by a former supplier with the Fairvalue of: Nima Ltd had unrecorded and internally generated Patent with the FairValue of; Nima Ltd had unrecorded and internally generated in-process research and development with the FairValue of: Fair value $62,700 $157,000 $212,000 $23,000 $57,000 $43,000 Further life(Years)