On $1$ January $2022,$ Carpet Ltd acquired all the shares of Snake Ltd for $$257000$ on an ex$-$div.

basis. On this date, the equity, and liabilities of Snake Ltd included the following balances:

At acquisition date, all the identifiable assets and liabilities of Snake Ltd were recorded at

amounts equal to fair value except for:

The plant and equipment had a useful life of $5$ years at acquisition date and was expected to be

used evenly over that time. Snake Ltd had not recorded an internally generated brand that

Carpet Ltd considered to have a fair value of $$22,000.$ The brand was considered to have an

indefinite life. The patent had a further $6-$year useful life at acquisition date. Any adjustments

for differences between carrying amounts at acquisition date and fair values are made on

consolidation. Goodwill on acquisition was impaired by $$10,000$ on $30$ June $2022.$

During the year ended $30$ June $2022,$ all inventories on hand at acquisition date were sold, and

the land was sold on $1$ June $2022$ for $$80,000.$ Any valuation reserves created are transferred

on consolidation to retained earnings when assets are sold or fully consumed.

Additional information:

$($a$)$ On $1$ May $2022,$ Snake Ltd purchased inventory worth $$13000$ from Carpet Ltd$.$ The

inventory had previously cost Carpet Ltd $$8000.$ Half of this inventory was sold externally

by $30$ June $2022.$

$($b$)$ On $30$ April $2022,$ Snake Ltd transferred inventory costing $$50,000$ to Carpet Ltd for

$$80,000.$ Carpet Ltd treated this item as plant. The item was still on hand at $30$ June $2022.$

Carpet Ltd applied a $10\%$ depreciation rate to this plant.

$($c$)$ On $1$ February $2022,$ Snake Ltd acquired inventory for $$6,000$ from Carpet Ltd at a mark$-$up

of $20\%$ on costs. One$-$quarter of this inventory has been sold to external parties for $$3,000$

by $30$ June $2022.$

$($d$)$ On $1$ January $2022,$ Carpet Ltd sold a motor vehicle to Snake Ltd for $$48,000.$ This vehicle

had originally cost Carpet Ltd $$90000$ and had a carrying amount at the time of sale of

$$57,000.$ Both entities charge depreciation at a rate of $20\%$ p$.$a$.$

$($e$)$ Carpet Ltd issued $9\%$ Debentures with par value of $$100$ each on $1$ January $2022.$ Some of

these Debentures, worth $$20,000,$ were purchased by Snake Ltd$.$ Interest on the

Debentures is calculated at $9\%$ p$.$a$.$ and the last interest payment was made on $31$ May

$2022.$

The corporate tax rate is $30\%.$

a$.$ Prepare acquisition analysis following template

b$.$ Prepare consolidation entries

c$.$ Analysis intra$-$group information

d$.$ Prepare the consolidation worksheet for Carpet Ltd as at $30$ June $2022,$ using the

attached template.

e$.$ Prepare a consolidated statement of financial position using account format, for

Carpet Ltd as at $30$ June $2022.$

f$.$ Jon is the financial accountant for the Splash Marketing corporate group. In reviewing

the graduate accountant$$s entries, he notices several entries allocated to the opening

Retained earnings account. The narration simply says, $$intragroup transaction elimination$.$

Jon is very concerned as he is certain this account $($Retained earnings$)$ should only be used

in the Pre$-$acquisition entry.