On 1 July 2015, Square Ltd acquired all of the issued shares of Circle Ltd for $2,970,000 cash Circle Ltds shareholders equity on 1 July 2015 consisted of the following Issued capital $1,320,000 Retained earnings 935,000 Total shareholders equity $2,255,000 At 1 July 2015, all of Circle Ltds net assets were recorded at fair value, except for the following items Carrying amount $ Fair Value $ Land 550,000 770,000 Plant Equipment 206,250 338,250 Internally generated brand name 0 275,000 The land was purchased by Circle Ltd on 1 January 2010 for $550,000 The plant and equipment was purchased by Circle Ltd on 1 July 2013 for $275,000 On 1 July 2013 the plant and equipment had an estimated useful life of 8 years with a zero salvage value Circle Ltd is depreciating the asset straight line over its useful life There is no change to the estimated useful life of the plant and equipment at acquisition date The unrecorded brand name refers to the value to the group of Circle Ltds internally generated Shapes brand, which is now a market leader At 1 July 2015, the brand name had an estimated useful life of 10 years (zero residual) and is amortised straight line across that period Both Square Ltd and Circle Ltd use the cost model for the valuation of assets, so any fair value adjustments must be completed as consolidation adjustments The directors of Square Ltd believe that the goodwill relating to the acquisition of Circle Ltd has been impaired by $55,000 during the year ended 30 June 2018 This is the first impairment of this goodwill since acquisition date No further impairment of intangible assets occurred during the year ended 30 June 2018 No dividends were paid or declared by Circle Ltd during year ended 30 June 2018 The company income tax rate is 30 Required On the basis of the information above, complete all necessary consolidation adjusting entries for the consolidated financial statements at 30 June 2018 in accordance with AASB 10 Assume a consolidated statement of comprehensive income, a consolidated statement of changes in equity and a consolidated statement of financial position are required

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On 1 July 2015, Square Ltd acquired all of the issued shares of Circle Ltd for $2,970,000 cash. Circle Ltds shareholders equity on 1 July

On 1 July 2015, Square Ltd acquired all of the issued shares of Circle Ltd for $2,970,000 cash. Circle Ltds shareholders equity on 1 July 2015 consisted of the following:

Issued capital $1,320,000

Retained earnings 935,000

Total shareholders equity $2,255,000

At 1 July 2015, all of Circle Ltds net assets were recorded at fair value, except for the following items:

	Carrying amount $	Fair Value $
Land	550,000	770,000
Plant & Equipment	206,250	338,250
Internally generated brand name	0	275,000

The land was purchased by Circle Ltd on 1 January 2010 for $550,000.
The plant and equipment was purchased by Circle Ltd on 1 July 2013 for $275,000. On 1 July 2013 the plant and equipment had an estimated useful life of 8 years with a zero salvage value. Circle Ltd is depreciating the asset straight-line over its useful life. There is no change to the estimated useful life of the plant and equipment at acquisition date.
The unrecorded brand name refers to the value to the group of Circle Ltds internally generated Shapes brand, which is now a market leader. At 1 July 2015, the brand name had an estimated useful life of 10 years (zero residual) and is amortised straight-line across that period.
Both Square Ltd and Circle Ltd use the cost model for the valuation of assets, so any fair value adjustments must be completed as consolidation adjustments.
The directors of Square Ltd believe that the goodwill relating to the acquisition of Circle Ltd has been impaired by $55,000 during the year ended 30 June 2018. This is the first impairment of this goodwill since acquisition date.
No further impairment of intangible assets occurred during the year ended 30 June 2018.
No dividends were paid or declared by Circle Ltd during year ended 30 June 2018.
The company income tax rate is 30%.

Required:

On the basis of the information above, complete all necessary consolidation adjusting entries for the consolidated financial statements at 30 June 2018 in accordance with AASB 10. Assume a consolidated statement of comprehensive income, a consolidated statement of changes in equity and a consolidated statement of financial position are required.