On 30 June 2014, PANDA Ltd purchased 70% of the shares of DOG Ltd for $815,000 cash. On the same date, DOG Ltd purchased 60% of the shares of CAT Ltd for $775,000 cash. The company used partial goodwill method to account for any non-controlling interest. The statements of financial position of DOG Ltd and CAT Ltd immediately before the investments were as follows:

Additional Information:

(1) At the date of investment, all the identifiable net assets of DOG Ltd and CAT Ltd were considered to be recorded at fair value in the respective statements of financial position of DOG Ltd and CAT Ltd, except CAT Ltds plant and machinery, which had a fair value of $150,000, and a carrying value of $120,000 (cost of $180,000). At 30 June 2014, the plant and machinery had a remaining useful life of 6 years. There was also a piece of land of DOG that had a fair value of $20,000 and was recorded in DOGs book for $15,000. This land was subsequently sold in 30 August 2014.

(2) The recoverable amount of goodwill of PANDA Ltd on the investment of DOG Ltd has been assessed to be $16,000, $15,000, and $15,100 on 30 June 2015, 30 June 2016 and 30 June 2017, respectively. During the current financial year, the goodwill has further been impaired by $1,000. No goodwill impairment is required for DOG Ltd on the investment of CAT Ltd for the year ended at 30 June 2018. No goodwill impairment has been recorded by DOG Ltd on CAT Ltd investment since the acquisition. Page 4 of 6 (3) During the 2018 financial year, DOG Ltd sold goods to PANDA Ltd for $30,000. These goods originally cost DOG Ltd $27,000. On 30 June 2018, 30 per cent of these goods remained in PANDA Ltds closing inventory.

(4) CAT Ltds opening inventory included goods purchased from PANDA Ltd for $18,000. These goods originally cost PANDA Ltd $ 16,500. 20 per cent of the inventory has been sold to other parties by the end of financial year 2017. A further 90 per cent of the remaining inventory has been sold to other parties during the 2018 financial year.

(5) On 1 July 2017, CAT Ltd sold machinery to DOG Ltd for $60,000. CAT Ltd originally purchased the machinery for $40,000 on 1 July 2013. The original estimated useful life was 10 years. The expected residual value is $nil. Remaining useful life for the asset remained constant after transfer from the groups point of view.

(6) On 1 February 2018, DOG Ltd sold an item of equipment as discount to PANDA Ltd for $70,000 and recorded a loss of $25,000. The remaining useful life of the equipment is estimated as 5 years with expected residual value is $nil.

(7) On 1 July 2014, CAT Ltd sold vehicles to PANDA Ltd for $70,000. CAT Ltd originally purchased the vehicles for $105,000 on 1 July 2011. The original estimated useful life was 5 years. The expected residual value is $nil. The remaining useful life is estimated to be another 4 years by PANDA Ltd after the transfer.

(8) The income tax rate is 30 per cent. In the 2018 financial year, PANDA, DOG and CAT Ltd have revealed the following financial information:

Required:

(1) Prepare the acquisition analyses for PANDA Ltds investment in DOG Ltd and DOG Ltds investment in CAT Ltd on 30th June 2014.

(2) Prepare the consolidated entries for PANDA Ltd and DOG Ltd for their controlled entities for the year ended 30 June 2018, including consolidation entries for any fair value adjustment, pre-acquisition elimination, goodwill impairment and intra-group transactions if any.

(3) Calculate the (direct) non-controlling interest in DOG Ltd and the (direct) non-controlling interest in CAT Ltd. Prepare the consolidated entries to account for the (direct) non-controlling interest in DOG Ltd and the (direct) noncontrolling interest in CAT Ltd for the year ended 30 June 2018.

(4) Calculate the indirect non-controlling interest in CAT Ltd and prepare the consolidated entries to account for the indirect non-controlling interest in CAT Ltd for the year ended 30 June 2018.

On 30 June 2014, PANDA Ltd purchased 70% of the shares of DOG Ltd for $815,000 cash. On the same date, DOG Ltd purchased 60% of the shares of CAT Ltd for $775,000 cash. The company used partial goodwill method to account for any non-controlling interest. The statements of financial position of DOG Ltd and CAT Ltd immediately before the investments were as follows: Assets Cash Account Receivable Invento Land Plant and machinery (NET Total Assets DOG Ltd ($)CAT Ltd ($) 175,000 34,000 28,000 589,000 495,000 1,321,000 35,000 16,800 5,800 780,000 315,000 1,152,600 Liabilities Accounts pavable 13,600 64,500 Shareholders' equit Share capital ($1 per share General Reserve Retained Earnings Total Liabilities and Equities 1,000,000 71,000 68,000 1,152,600 1,200,000 35,000 21,500 1.321,000 On 30 June 2014, PANDA Ltd purchased 70% of the shares of DOG Ltd for $815,000 cash. On the same date, DOG Ltd purchased 60% of the shares of CAT Ltd for $775,000 cash. The company used partial goodwill method to account for any non-controlling interest. The statements of financial position of DOG Ltd and CAT Ltd immediately before the investments were as follows: Assets Cash Account Receivable Invento Land Plant and machinery (NET Total Assets DOG Ltd ($)CAT Ltd ($) 175,000 34,000 28,000 589,000 495,000 1,321,000 35,000 16,800 5,800 780,000 315,000 1,152,600 Liabilities Accounts pavable 13,600 64,500 Shareholders' equit Share capital ($1 per share General Reserve Retained Earnings Total Liabilities and Equities 1,000,000 71,000 68,000 1,152,600 1,200,000 35,000 21,500 1.321,000