On 1st July, 2018 Nile Ltd Ltd acquired 70% of the share capital of Amazon Ltd for $80,000,000. Equity of Amazon Ltd at acquisition date was:

Share Capital $ 52,000,000 General Reserve $ 20,000,000 Retained Earnings $ 10,000,000 4 All assets of Amazon Ltd were recorded at fair value on acquisition, except for one property which had a fair value which was $2,000,000 lower than its carrying amount. The cost of the property was $20,000,000 with accumulated depreciation of $12,000,000. Ignore Taxes. Required:

(a) Complete the worksheet below using the NET method. (4.5 marks)

(b) Prepare the consolidation adjustments and eliminations entries and recognise the NCI in the pre-acquisition equity of Amazon Ltd, assuming that the NCI was measured at the proportionate share of the acquirees identifiable net assets. (6.5 marks)

Amazon Ltd (5) $,000 Nile Ltd Ltd (70% of Amazon) (P) $,000 30% NCI $,000 Elimination of Investment in Amazon Ltd Fair Value of consideration transferred Less: FV of identifiable assets acquired & liabilities assumed Share capital on acquisition date $2,000 General reserve-acquisition date 20,000 Retained earnings-acquisition date 10,000 Fair value adjustment Goodwill on acquisition Non-controlling interest