Question 1 [27 marks] On 1 July 2019, Sandy Ltd acquired all the issued capital of Vida Ltd for a cash payment of $67 000 when the equity of Vida Ltd was Share Capital $31 000 $5 000 $8 000 Retained earnings Revaluation surplus At 1 July 2019, all assets of Vida Ltd were fairly valued. Directors determined that goodwill would be impaired by 10% in 2020, 2021 and 2022 on its original value. Assume that there are no intra-group transactions or deferred tax consequences from 1 July 2019 to 30 June 2022. The financial statements at 30 June 2022 are shown in the answerbook in the partially-completed consolidation worksheet. Tax rate is 30%. Reporting date is 30 June. Sandy Ltd has investment in other entities. (i) Prepare an acquisition analysis and determine the amount of goodwill or gain on bargain purchase at acquisition. (show all workings) (1 mark) (ii) Prepare the acquisition elimination journal entries for consolidation as at 30 June 2022. (Number consolidation elimination/adjusting journal entries by 1,2,3 etc; Narrations are required) (4 marks) (iii) Complete the consolidation worksheet of Sandy Ltd Group at 30 June 2022. (10 marks) (iv) The following account balances existed at 30 June 2023: Sandy Ltd: Dividend Revenue $3 500 and Dividend Receivable $500. Vida Ltd Dividend Paid $2 000 and Dividend Payable Snil. Prepare the consolidation elimination journal entry for intra-group dividend for the year ending 30 June 2023 (Narrations are required) (1 mark) (v) Vida Ltd sold an item of plant to Sandy Ltd on 1 July 2022 for $3,600. The asset had cost Vida Ltd $4,000 when purchased on 1 July 2021. When originally acquired the useful life of the plant was assessed at 4 years with no residual value and this estimate has remained unchanged. Straight-line depreciation was used by the group