Melissa Ltd purchased all the issued shares of Soren Ltd for $1,937,000 on 1 July 2020 when the equity of Soren Ltd was as follows:

Share Capital 774,800

General Reserve 581,100

Asset Revaluation Surplus 290,550

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

Account Cost Carrying Amount Fair Value Future life (years)

Inventory -- $58,100 $63,900 -

Land -- $145,000 $160,000 -

Equipment $225,000 $180,000 $216,000 4

Contingent Liability: Soren Ltd identifited at acquisition date a law suit where Soren Ltd was sued by a former supplier with the Fair value of $23,000

Unrecoreded Asset: Soren Ltd had unrecored and internally generated Patent with the Fair Value of $58,000

Unrecorded Assets: Soren Ltd unrecored and internally generated in-process reserarch and development with the Fair value of $44,000

70% of inventory were sold by 30 June 2020. Further life of the assets is listed on the above table. Partial goodwill method is under use and Tax rate :30%.

Required:

1) Pass the asset acquisition analysis at acquisition date

2) Pass adjusting journal entries for the consolidation worksheet at acquisition date

3) Pass adjusting journal entries for the consolidation worksheet on 30 June 2021

If Melissa Ltd purchased just 95% of the issued shares of Soren Ltd, partial goodwill method is under use and the NCI at acquisition date is measured based on the proportionate share if the identifiable assets and liabilities in Soren Ltd.

4) Prepare the acquisition analysis at acquisition date

5) Prepare the business combination valuation entries and pre-acquisition entry at acquisition date

6) Prepare the journal entry to recognise NCI at acquisition date

7) Prepare the consolidation worksheet entries at 30 June 2020. Assume a profit for Soren Ltd for the year ended 30June 2020 of $3,486,000 and no other changes in Soren Ltd's equity since the acquisition date

8) Explain in details:

a)Why is it necessary to make consolidated worksheet adjustments?

b)How often is it necessary to make consolidated worksheet adjustments?

c)Where should consolidated worksheet adjustment journals be posted?

9) List and explain the accounting standards issues relevant to the consolidation process both for full control and NCI

Noet: Kindly provide all the ansers form Q. 1 to Q.9