On 01 July 2020 Sunshine Manufacturing Ltd acquired all the issued shares of Goldcoast Ltd for $ The equity of Goldcoast at this date is as follows Share capital 65000 Retained earnings 36000 Al the identifiable assets and abilities of Goldcoast Ltd were recorded at amounts equal to their fair values at acquisition date except for Carrying amount Fair value Inventory 82000 88000 Machine (the cost is 78000) 54000 57000 The equipment was considered to have a further useful ife: 5 years Of the inventory 80% was sold by 30 June 2021 The following information was provided by the two companies at 30 June 2021 Sunshine Goldcoast Profit before tax 120000 12500 Income tax expense 56000 4200 Profit for the year 64000 8300 Retained earnings (01/07/2020) 80000 38000 Retained earnings (30/06/2021) 144000 44300 Share capital 360000 65000 Retained earnings 144000 44300 General reserve 10000 0 Asset revaluation surplus 18500 0 liabilities 128500 22000 661000 131300 Land 129000 20000 Plant and Equipment 380000 125600 Accumulated depreciation - 110000 33000 inventory 55000 18700 Investment in Goldcoast 227000 0 661000 131300 In addition, there are some intra-group transactions between Sunshine and Goldcoast shown below. a. During the year, Sunshine sold inventory costing 4500 to Goldcoast for 6000. At the end of the year, 30% of the inventory is still held on hand by Goldcoast. b. on 1 January 2021, Goldcoast sold a plant to Sunshine. The plant has carrying amount of 115,000 Goldeoast sold it to Sunshine for 130,000 The remaining useful life is estimated to be 5 years.

Required:Prepare the

-Acquisition analysis

-Consolidation Adjustments

-consolidation Worksheet (example attached with this question below)

-consolidated financial statements (balance sheet, statement of equity and statement of comprehensive income for Sunshine Manufacturing Ltd at 30 June 2021.

On 01 July 2020 Sunshine Manufacturing Ltd acquired all the issued shares of Goldcoast Ltd for $ 227000 The equity of Goldcoast at this date is as follows Share capital 65000 Retained earnings 36000 All the identifiable assets and abilities of Goldcoast Ltd were recorded at amounts equal to their fair values at acquisition date except for Carrying amount Fair value Inventory 82000 88000 Machine (the cost is 78000) 54000 57000 The equipment was considered to have a further usefu ife: 5 years Of the inventory 80% was sold by 30 June 2021 The following information was provided by the two companies at 30 June 2021 Sunshine Goldcoast Profit before tax 120000 12500 Income tax expense 56000 4200 Profit for the year 64000 8300 Retained earnings (01/07/2020) 80000 38000 Retained earnings (30/06/2021) 144000 44300 Share capital 360000 65000 Retained earnings 144000 44300 General reserve 10000 0 Asset revaluation sur plus 18500 0 liabilities 128500 22000 661000 131300 Land 129000 20000 Plant and Equipment 380000 125600 Accumulated depreciation - 110000 33000 inventory 55000 18700 Investment in Goldcoast 227000 0 661000 131300 In addition there are some intra-group transactions between Sunshine and Goldcoast shown below a During the year, Sunshine sold inventory costing 4500 to Goldcoast for 6000. At the end of the year, 30% of the inventory is still held on hand by Goldcoast. b on 1 January 2021, Goldcoast sold a plant to Sunshine. The plant has carrying amount of 115,000 Goldcoast sold it to Sunshine for 130,000 The remaining useful life is estimated to be 5 years. Required Prepare the Acqusition analysis, Consolidation Adjustments, Worksheet and consolidated financial statements of Sunshine Manufacturing Ltd at 30 June 2021 usir Ltd Ethan Darren Adjustments Group Ltd Dr Cr 120 000 12 500 Profit before tax Income tax expense (56 000) (4200) Profit 64 000 8 300 Retained earnings 80 000 36 000 (1/7/17) Transfer from BCVR 144 000 44 3001 Transfer to general (O) (3 000) reserve Retained earnings 144 000 41 300 (30/6/18) Share capital 360 000 540001 BCVR General reserve 10 000 3 000 514 000 98 300 Asset revaluation 13 500 18 000 surplus (1/7/17) Gains 5 000 2 000 Asset revaluation 18 500 20 000 surplus (30/6/18) 532 500h18 300 Liabilities 42 500 13 000 575 00031 300 Land 160 000 20 000 Plant & machinery 360 000 25 600 Accum. depreciation (110 000133 000) Inventory 55 000 18 700 Shares in Darren 110 000 575 000 31 3001