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Q6mmmmmmmmm On 1 July 2018, Yazoo Lid acquired 90% of the issued shares of Prince Lid, paying $572,000. At this acquisition date, the following information

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On 1 July 2018, Yazoo Lid acquired 90% of the issued shares of Prince Lid, paying $572,000. At this acquisition date, the following information related to Prince Ltd: . Equity comprised of Share Capital of $335 000 and Retained Earnings of $270 000. . All identifiable assets and liabilities were recorded at amounts equal to their fair value. . Additional information: . At 1 July 2018, the fair value of the non-controlling interest was $62,000. . Prince Lid recorded a profit of $20,000 for the year ended 30 June 2019, and a profit of $15,000 for the year ended 30 June 2020. Yazoo Lid adopts the full goodwill method. . Income tax rate is 30%. Required: 1. Calculate goodwill. Show all your workings. (6 marks) 2. Prepare the consolidation worksheet entries at 30 June 2020 for Yazoo Lid. Journal narrations are not required. Show all workings. (14 marks)

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