Question 2-20 marks On 1 July 2020, Everest Ltd acquired the remaining 80% of the issued shares that it did not previously own in K2 Ltd, transferring 500,000 Everest Ltd shares to K2 Ltd's former shareholders. At that date, the financial statements of K2 Ltd showed the following information: Share capital General reserve Retained earnings $1,200,000 550,000 880,000 All the assets and liabilities of K2 Ltd were recorded at amounts equal to their fair values at the acquisition date. The fair value of Everest Ltd's shares at acquisition date was $5.00 per share. The previously held interest by Everest Ltd in K2 Ltd (i.e. 20% of the issued shares) was recognised in Everest Ltd's accounts at the fair value at acquisition date of $500,000. Everest Ltd incurred $35,000 in acquisition-related costs, including $50,000 in share issue costs. Required 1. 2. 3. Prepare the acquisition analysis at 1 July 2020. [6 marks] Prepare the journal entries for Everest Ltd to recognise the additional investment in K2 Ltd at 1 July 2020. [7 marks] Prepare the consolidation worksheet entries for Everest Ltd's group at 1 July 2020. [7 marks]