On 1 July 2020, Century Ltd acquired 100% of the share capital of Decade Ltd for $260 000. At this date, the equity of Decade Ltd consisted of Share capital--100 000 shares $150 000 General reserve 30 000 Retained earnings 20 000 At 1 July 2020, all the identifiable assets and liabilities of Decade Ltd were recorded at fair value except for the following assets Carrying amount Fair value Plant cost $90 000 $100 000 Land B0 000 120 000 The plant had a further 5-year life, with benefits expected to be received evenly over that period. Financial information for these two companies as at 30 June 2021 included: Century Ltd Decade Ltd Profit before tax 140 000 120 000 Income tax expense 40 000 Profit after tax 110 000 80 000 Retained earnings (1/7/20) 80 000 20 000 190 000 100 000 Interim dividend paid 20 000 15 000 Dividend declared 25 000 20 000 45 000 35 000 Retained earnings (30/6/21) $145 000 $65 000 There was an impairment loss of 10% on goodwill during the year ended 30 June, 2021 Assume a tax rate of 30% Required: a. Prepare the acquisition analysis at 1 July 2020. (4 marks) b. Prepare the consolidation worksheet entries for the year ended 30 June, 2021. (10 marks) 30 000 On 1 July 2020, Century Ltd acquired 100% of the share capital of Decade Ltd for $260 000. At this date, the equity of Decade Ltd consisted of Share capital--100 000 shares $150 000 General reserve 30 000 Retained earnings 20 000 At 1 July 2020, all the identifiable assets and liabilities of Decade Ltd were recorded at fair value except for the following assets Carrying amount Fair value Plant cost $90 000 $100 000 Land B0 000 120 000 The plant had a further 5-year life, with benefits expected to be received evenly over that period. Financial information for these two companies as at 30 June 2021 included: Century Ltd Decade Ltd Profit before tax 140 000 120 000 Income tax expense 40 000 Profit after tax 110 000 80 000 Retained earnings (1/7/20) 80 000 20 000 190 000 100 000 Interim dividend paid 20 000 15 000 Dividend declared 25 000 20 000 45 000 35 000 Retained earnings (30/6/21) $145 000 $65 000 There was an impairment loss of 10% on goodwill during the year ended 30 June, 2021 Assume a tax rate of 30% Required: a. Prepare the acquisition analysis at 1 July 2020. (4 marks) b. Prepare the consolidation worksheet entries for the year ended 30 June, 2021. (10 marks) 30 000