Question 2 Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of financial position of the companies immediately after the acquisition are provided below. All assets have been reported following fair value. Statement of Financial Position For the year ended 1 July 2011 Nick Ltd Wing Ltd $ Shareholders' equity Share capital 450,000 180,000 General reserve 45,000 25,000 Retained earnings 140,000 20,000 Total shareholders' equity 635,000 225,000 Assets Current assets Cash at Bank 50,000 30,000 Accounts Receivable 20,000 10,000 Inventory 100.000 25.000 170,000 65,000 Non-current assets Investment in Wing Ltd 270,000 Land 250,000 200,000 Plant & Equipment 100,000 80,000 620.000 280,000 Total assets 790,000 345.000 Liabilities Current liabilities Accounts Payable Interest Payable Non-current liabilities Bank loan Total liabilities Net assets 40,000 10,000 15.000 8.000 55,000 18,000 100,000 102,000 155,000 120,000 635,000 225,000 Required 1. Calculate Goodwill (show workings) 2. Prepare consolidation journal entry at the date of acquisition. 3. Prepare consolidation worksheet. 4. Prepare the consolidated statement of financial position as at 1 July 2011 (immediately after the acquisition).