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Question 2: (22 marks) On 1 July 2018, Dreedle Ltd acquired all of the issued shares of Dobbs Ltd for $760 000. At the acquisition

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Question 2: (22 marks) 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. (10 marks) (b) Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2019 provided below. (12 marks) Note to students: please fill in the worksheet in the template provided. Question 2: (22 marks) 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. (10 marks) (b) Based on the adjustment entries you have provided, complete the consolidation worksheet for 30 June 2019 provided below. (12 marks) Note to students: please fill in the worksheet in the template provided

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