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On 1 July 2015, Georgia Ltd paid $2 696 000 for 40% of the shares of Emma Ltd, a company involved in the manufacture of

On 1 July 2015, Georgia Ltd paid $2 696 000 for 40% of the shares of Emma Ltd, a company involved in the

manufacture of garden equipment. At that date, the equity of Emma Ltd consisted of:

Share capital 3 000 000 shares $ 3 000 000

Retained earnings 3 000 000

At 1 July 2015, all the identifiable assets and liabilities of Emma Ltd were recorded at fair value except for:

Carrying amount Fair value

Inventory $1 000 000 $1 200 000

Plant (cost $3 200 000) 2 500 000 3 000 000

The plant had a further expected useful life of 5 years.

Additional information

1-The profit at 30/6/2018 was 4500000

2-Assets Revaluation has increased by 500000 during 2017/2018

3-Half of inventory was sold to external party during 2017/2018

4-All inventory was sold to external 2017/2018

5-On 1/1/2018 the equipment were sold to external party

6-Dividends declured and paid were 3000000

: Required Report all journal entries at 30/6/2018

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