On 1 July 2013 William Ltd acquired all of the share capital (cum div)of Magnus Limited

Required:

b.) Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2017.

Additional Information 1. On 1 Jan 2017 William Ltd sold inventory to Magnus Ltd costing $70,000 for $80,000. Half of this inventory was sold to outside parties by 30/6/17. 2. On 1 Jan 2016 William Ltd sold inventory costing $12000 to Magnus Ltd for $15,000. Magnus Ltd treats the item as equipment and depreciates it at 10% per annum. 3.On 1 July 2016 William sold plant to Magnus for $21,000. The plant had cost William $24,000 on 1 July 2014 and it was being depreciated at 10% per annum. Magnus regards the plant as inventory. The inventory was all sold by 30th July 2016. 4. At 1 July 2016 William Ltd held inventory that it had purchased from Magnus Ltd on 1 June 2016 at a profit of $5000. All inventory was sold by 30 June 2017 5. Magnus Ltd accrues dividends from William Ltd once they are declared. 6. Magnus Ltd has earned $1600 in interest revenue in the 2017 financial year from William Ltd. 7. Magnus Ltd has earned $3500 in service revenue in the 2017 financial year from William Ltd. 8. Assume a tax rate of 30%