Prepare the consolidated statement of profit or loss and other comprehensive income, the consolidated balance sheet and the consolidated statement of changes in equity for the period ended 30 June 2017.

ACCT2201 GROUP CASE STUDY On 1 July 2013 David Ltd acquired all of the share capital (cum div)of Goliath Limited for a consideration of $600,000 cash and a brand that was held in their accounts at a book value of $10,000 but now had a fair value of $24,000. At the date of acquisition Goliath's accounts showed a dividend payable of $10,000. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of: ASSET Inventory Land Plant (less depreciation) Market Value 18,000 68,000 Book Value 16,000 65,000 17,000 (2000) 15,000 15,000 Accounts Receivable 19,000 14,000 The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $14,000 The land was sold on 30/12/16 for $70000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of David Ltd consisted of: Share Capital General Reserve Retained Earnings 380,000 70,000 62,000 Information from the trial balances of Goliath Ltd and David Ltd at 30 June 2017 is presented overleaf. Additional Information 1. On 1 Jan 2017 David Ltd sold inventory to Goliath Ltd costing $70,000 for $80,000. Half of this inventory was sold to outside parties by 30/6/17. 2. On 1 Jan 2016 David Ltd sold inventory costing $12000 to Goliath Ltd for $15,000. Goliath Ltd treats the item as equipment and depreciates it at 10% per annum. 3. On 1 July 2016 David sold plant to Goliath for $21,000. The plant had cost David $24,000 on 1 July 2014 and it was being depreciated at 10% per annum. Goliath regards the plant as inventor The inventory was all sold by 30th July 2016. 4. At 1 July 2016 David Ltd held inventory that it had purchased from Goliath Ltd on 1 June 2016 at a profit of $5000. All inventory was sold by 30 June 2017 5. Goliath Ltd accrues dividends from David Ltd once they are declared. 6. Goliath Ltd has earned $1600 in interest revenue in the 2017 financial year from David Ltd. 7. Goliath Ltd has earned $3500 in service revenue in the 2017 financial year from David Ltd. 8. Assume a tax rate of 30%