On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360 000.At the date of acquisition, the shareholders' equity of Jamuna Ltd is:

Share capital

Retained earnings

Total shareholders' equity

Additional information

$450 000 $300 000750 000

• On the date of acquisition, buildings have a carrying amount in the accounts of Jamuna Ltd of $240 000 and a market value of $300 000. The buildings have an estimated useful life of 10 years after 1 July 2014.
• For the year ending 30 June 2015 Jamuna Ltd records an after-tax profit of $90 000, from which it pays a dividend of $30 000.
• For the year ending 30 June 2016 Jamuna Ltd records an after-tax profit of $300 000, from which it pays a dividend of $150 000.
• Assume a tax rate of 30% is assumed
• Required
• Apply equity method of accounting to:

(a) Calculate the amount of goodwill at the date of acquisition (3 marks) (b) Preparethejournalentriesfortheyearending30June2015(3marks) (c) Prepare the journal entries for the year ending 30 June 2016 (5 marks)