On 1 July 2020, Hood Ltd acquired 100% of the issued shares of Robin Ltd on acum div. basis.The fair value of the consideration paid was measured at $190,350. At this date, the records of Robin Ltd included the following information:

Share Capital

$100,000

Retained Earnings

$50,000

Asset Revaluation reserve

$15,000

Dividends payable

$5,000

Goodwill

$3,000

The dividend liability at 1 July 2020 was paid in September 2020. At 1 July 2020, all the identifiable assets and liabilities of Robin Ltd were recorded in the subsidiary's books at fair value except for the following assets:

Carrying Amount

Fair Value

Inventory

$50,000

$58,000

Property and Equipment

$100,000

$120,000

The inventory was all sold by 30 June 2021. The Property and equipment has a further 5-year life and is depreciated on a straight-line basis. Goodwill was not impaired in any period. When assets are sold or fully consumed, any relating business combination valuation reserve is transferred to retained earnings. The tax rate is 30%.

Part A

prepare acquisition analysis as at 1 July 2020

Prepare the pre-acquisition entries at 30 June 2021