On 1 July 2019 Short Ltd acquired 80% of the shares of Tall Ltd for $436 200.

At this date the equity of Tall Ltd consisted of share capital of $280 000 and retained earnings of $140 000. All the identifiable asset and liabilities of Tall Ltd were recorded at amounts equal to fair value except for:

Carrying amount FV

Land 80 000 95 000

Plant (Cost $380 000) 300 000 330 000

Inventories 15 000 18 000

The plant was considered to have a further 10-year life.

All the inventory was sold by 30 June 2020.

A litigation claim of $6 000 and Patent of $20 000 was unrecorded during the 2019 financial year.

The tax rate is 30%. Short Ltd uses the partial goodwill method.

During the 2019-20 period Tall Ltd recorded a profit of $60 000.

Required

A. Using partial goodwill, Calculate acquisition analysis at 1 July 2019

B. Prepare all consolidation journal entries for 30 June 2020

At 1 July 2019:

(a) Worksheet entries at 1 July 2019:

(i) BCVR entries:

Land:

Plant:

Inventories

Patent

Litigation

(ii) Pre-acquisition entries:

(iii) NCI share of equity at 1 July 2019:

Part B

(i) Journal entries 30 June 2020:

Land:

Plant:

Sale of inventory

Patent

Litigation

(ii) Pre-acquisition entries:

(iii) NCI share of equity at 30 June 2020:

(iv) NCI share of equity (1/7/19 - 30/6/20):