Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help On 1 July 2018, Dreedle Ltd acquired all of the issued shares of Dobbs Ltd for $760 000. At the acquisition date the

please help

image text in transcribed

On 1 July 2018, Dreedle Ltd acquired all of the issued shares of Dobbs Ltd for $760 000. At the acquisition date the equity of Dobbs Ltd consisted of: Share capital $400,000 Reserves 180.000 Retained earnings 140,000 At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of Dobbs Ltd with the exception of Land which had a fair value $26.000 greater than its carrying amount. The corporate tax rate is 30%. Required: (a) Prepare an analysis of the situation and prepare the 30 June 2019 consolidation journal entries (with explanationarrations) relevant to the above transactions and events that the parent should do. (b) Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2019 provided below. Note to students: please fill in the worksheet in the template provided. On 1 July 2018, Dreedle Ltd acquired all of the issued shares of Dobbs Ltd for $760 000. At the acquisition date the equity of Dobbs Ltd consisted of: Share capital $400,000 Reserves 180.000 Retained earnings 140,000 At the date of acquisition this equity reflected the fair values of all the identifiable assets and liabilities of Dobbs Ltd with the exception of Land which had a fair value $26.000 greater than its carrying amount. The corporate tax rate is 30%. Required: (a) Prepare an analysis of the situation and prepare the 30 June 2019 consolidation journal entries (with explanationarrations) relevant to the above transactions and events that the parent should do. (b) Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2019 provided below. Note to students: please fill in the worksheet in the template provided

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

1st Edition

1439828865, 978-1439828861

More Books

Students also viewed these Accounting questions

Question

Explain how SIHRM is linked to different global business strategies

Answered: 1 week ago