Nina Ltd purchased 91% of the issued shares of Carl Ltd for $1483000 on 1 July 2018 when the equity of Carl Ltd was as follows; Share capital Retained earnings General reserve 593200 444900 222450 At this date, Carl Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; Fair value Further life(Years) $49,000 $122,000 $166,000 8 Carrying Account Cost Amount Inventories $44,500 Land $111,000 Vehicle $172,500 $138,000 Carl Ltd identified at acquisition date a contingent liability related to a lawsuit where Carl Ltd was sued by a former supplier Carl Ltd had unrecorded and internally generated Patent with the FairValue of: Carl Ltd had unrecorded and internally generated in-process research and development with the FairValue of: $18,000 $44,000 $33,000 60% of inventory on hand at 1 July 2018 were sold by 30 June 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30% 60% of inventory on hand at 1 July 2018 were sold by 30 June 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30% Required 1- Prepare the acquisition analysis at acquisition date. 2- Prepare the business combination valuation entries and pre-acquisition entry at acquisition date. 3- Prepare the journal entry to recognise NCI at acquisition date. 4-Prepare the consolidation worksheet entries at 30 June 2019. Assume a profit for Carl Ltd for the year ended 30 June 2019 of $52100. 5- Explain how the step 1 to 4 will change if the full goodwill method is used. 6. List and explain the accounting standards issues relevant to the consolidation process. 7. Compare in detail the current situation with the case that Nina Ltd acquires only 20% of issued shares of Carl Ltd with a significant influence on Carl Ltd. Nina Ltd purchased 91% of the issued shares of Carl Ltd for $1483000 on 1 July 2018 when the equity of Carl Ltd was as follows; Share capital Retained earnings General reserve 593200 444900 222450 At this date, Carl Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; Fair value Further life(Years) $49,000 $122,000 $166,000 8 Carrying Account Cost Amount Inventories $44,500 Land $111,000 Vehicle $172,500 $138,000 Carl Ltd identified at acquisition date a contingent liability related to a lawsuit where Carl Ltd was sued by a former supplier Carl Ltd had unrecorded and internally generated Patent with the FairValue of: Carl Ltd had unrecorded and internally generated in-process research and development with the FairValue of: $18,000 $44,000 $33,000 60% of inventory on hand at 1 July 2018 were sold by 30 June 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30% 60% of inventory on hand at 1 July 2018 were sold by 30 June 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30% Required 1- Prepare the acquisition analysis at acquisition date. 2- Prepare the business combination valuation entries and pre-acquisition entry at acquisition date. 3- Prepare the journal entry to recognise NCI at acquisition date. 4-Prepare the consolidation worksheet entries at 30 June 2019. Assume a profit for Carl Ltd for the year ended 30 June 2019 of $52100. 5- Explain how the step 1 to 4 will change if the full goodwill method is used. 6. List and explain the accounting standards issues relevant to the consolidation process. 7. Compare in detail the current situation with the case that Nina Ltd acquires only 20% of issued shares of Carl Ltd with a significant influence on Carl Ltd