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please help me answer the whole question for accounting acf2100 ACC/ACF2100 Financial Accounting Topic 10 Equity Accounting: Presentation Question Large Ltd (investor) acquired 25% of

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please help me answer the whole question for accounting acf2100

image text in transcribed ACC/ACF2100 Financial Accounting Topic 10 Equity Accounting: Presentation Question Large Ltd (investor) acquired 25% of Small Ltd (investee) on 1 July 2015 for $200,000. Large Ltd is not a parent entity. At the date of acquisition the equity of Small Ltd was: Share Capital 500,000 Retained earnings 140,000 640,000 Plant in Small's books was recorded at $20,000 below its fair value on 1 July 2015. The plant depreciation rate is straight line over the remaining useful life of 5 years. Small Ltd recorded a profit of $120,000 during the year ending 30 June 2016 and paid a dividend of $40,000 during the same period. On 1 July 2016, Small Ltd revalued the plant that was on hand at acquisition by $20,000 (to fair value). During the year ended 30 June 2017, Small Ltd reported a profit of $100,000. During that financial year, Large Ltd held inventory sold to it by Small Ltd for $75,000. It originally cost Small Ltd $50,000. On 1 July 2016, Large Ltd sold a truck to Small Ltd at a gain of $80,000. The remaining useful life is 4 years. Small Ltd also declared a dividend of $30,000 during the same period. The tax rate is 30%. Required: (a) Prepare an acquisition analysis to determine the goodwill arising on the acquisition of Small Ltd at 1 July 2015 and record the investment, in the records of Large Ltd. (b) Prepare the journal entries in the records of Large Ltd for the year ended 30 June 2016 in relation to its investment in Small Ltd. (c) Prepare the journal entries in the records of Large Ltd for the year ended 30 June 2017 in relation to its investment in Small Ltd

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