Question 1 (20 Marks) On 31 December 20X4, P Ltd acquired 90% of the issued share capital of S Ltd. Immediately after the combination, the statements of financial position of both companies were as follows: 09 70,000 Property, plant and equipment Investment in s Current assets P $ 180,000 120,000 30.000 330,000 25.000 95,000 Share capital Retained earnings Current liabilities 200,000 10.000 110.000 60,000 20.000 25.000 330.000 95,000 At the date of acquisition, the fair values of the identifiable assets and liabilities of Lid were equal to their book values, with the exception of property, plant and equipment, which had a fair value of $90 000, to be adjusted in S's book. Required: Based on the information available: (a) Prepare the pro-forma entries for the parent entity. (2 marks) (b) Prepare the pro-forma entries including revaluation for the subsidiary entity. (2 marks) (c) Prepare the pre-acquisition elimination entry. (5 marks) (d) Assuming that FV of NCI is $10,000. Compute NCI's goodwill. (2 marks) (e) What method was used in calculating the goodwillin (c)? (1 mark) (1) Using the information above, prepare a consolidation worksheet to show the adjustments on consolidation and the amounts that would appear in the consolidated statement of financial position at 31 December 20X4. (8 marks) P S Eliminations Consolidated financial statement $ $ Dr $ Cr$ Share capital Retained earnings Revaluation reserve Current liabilities $ Property, plant and equipment Investment in s Current assets Goodwill