On 1 July 2015, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in Fluffy Ltd valued at $3 per share. At this date, the equity of Glider Ltd consisted of $66 000 share capital and $6000 retained earnings.
At 1 July 2015, all the identifiable assets and liabilities of Glider Ltd were recorded at amounts equal to their fair values except for:
Acrobat Reader File Edit View Window Help 260 $ 94% Fri 14:20 QE ... ACT 503 Assignment $2 2020.pdf + Home Tools Corporate Accoun ACT 503 Assignm... x (? Sign In it Apps 4 15 + 94.7% Bookmarks On 1 July 2015, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 Export PDF 000 shares in Fluffy Ltd valued at $3 per share. At this date, the equity of Glider Lid consisted of $66 000 share capital and $6000 retained earnings. Create PDF At 1 July 2015, all the identifiable assets and liabilities of Glider Lid were recorded at amounts equal to their fair values except for: Edit PDF Carrying amount Fair value Comment Plant (cost $150 000) $120 000 $123 000 Combine Files Patents $105 000 $90 000 Organize Pages Inventory $18 000 $22 500 The plant was considered to have a further 5-year life. The patents were sold for $120 000 to an external entity Adobe Acrobat Pro DC on 18 August 2015. The inventory was all sold by 30 June 2016. Delete, insert, extract, or rotate pages Additional information (a) Fluffy Ltd sells certain raw materials to Glider Ltd to be used in its manufacturing process. At 1 July Learn more 2016, Glider Ltd held inventory sold to it by Fluffy Lid in the previous year at a profit of $600. During the 2016-17year, Fluffy Ltd sold inventory to Glider Ltd for $21 000. None of this was on hand at 30 June 2017. (b) Glider Ltd also sells items of inventory to Fluffy Ltd. During the 2016-17year, Glider Ltd sold goods to Fluffy Ltd for $4500. At 30 June 2017, inventory which had been sold to Fluffy Ltd at a profit of Store and share files in the $300 was still on hand in Fluffy Ltd's inventory. Document Cloud Learn More (C) On 1 July 2016, Glider Ltd sold an item of plant to Fluffy Ltd for $15 000. This plant had a carrying amount in the records of Glider Itd of $11 000 at time of sale This tune of plant is depreciated at OCT 9 W P DOCXAcrobat Reader File Edit View Window Help 260 $ 93% Fri 14:20 QE ... ACT 503 Assignment $2 2020.pdf + Home Tools Corporate Accoun ACT 503 Assignm... x (? Sign In it Apps 1 5 94.7% Bookmarks Fluffy Ltd Glider Ltd Export PDF Dr Cr Dr CR Sales revenue 64500 78000 Create PDF Cost of sales 30900 46350 Trading expenses 4800 9000 Edit PDF Office expenses 4950 4050 Depreciation expenses 1800 3900 Comment Proceeds on sale of plant 9000 15000 Carrying amount of plant sold 7500 14000 Combine Files Income tax expense 11100 7300 Organize Pages Share capital 96000 66000 Retained earnings 48000 31500 Current liabilities 21100 10500 Adobe Acrobat Pro DC Deferred tax liability 11000 15000 Delete, insert, extract, or Plant 57000 107250 rotate pages Accumulated depreciation - plant 18300 33450 Intangibles 12000 11100 Learn more Deferred tax assets 8100 9450 Shares in Glider Ltd 90000 0 Inventory 28500 24600 Store and share files in the Receivables 8250 12450 Document Cloud 267900 267900 249450 249450 Learn More Doquired OCT 9 WE P DOCX
