QUESTION 9 Black Lid acquired 254% of the shares of White Lid on 1 July 2016 for $58,000. At acquisition date the equity of White Lid consisted of Share capital $110,000 General reserve 40 000 Retained earnings 90.000 2. At the date of acquisition, all the assets and Habilities of White Led were recorded at fair value other than the following Equipment (Cost $20,000) $14,00 0 19,000 Inventory The inventory was all sold by 30 june 2017. The equipment has a remaining useful life of 10 years 4. Other Information: The inventory of Black Lid on 30 June 2017 included inventory purchased from White Led for $6,000. The original cast of the inventory was $4000. The inventory was sold to outside parties in September 2017. h. Black l.td sold inventory to White Led for $9,000 on 1 June 2018. The sale price represented a mark up of 354% on cost. By 30 june 2018 White Led had sold 40% of this Inventory outside the group. C. On 1 June 2018 Black Led sold an item of plant to White Itd for $11,000. The carrying amount at the time of sale was $9000 (cost was $1 1,000). At the time of the sale the asset had a remaining useful life of 4 years. d. The investment account is not considered impaired. E. Relevant information for White Lid for the year ended 30 June 2017 and 2018 are shown below: 2017 2018 Profit before tax 20,0 00 Income tax expense 4.000 10.500 Profit after tax 21,000 24,500 Retained profits - opening bal. 90,000 91,000 Dividend paid (20,0 00] (22,000] Transfer to general reserve LS.00 0 Retained profits - closing bal. 91,000 98,500 General reserve 40 0 00 45,000 Share capital 110 000 110,000 Revaluation surplus 45,000 Spawnbay 1) Prepare an acquisition analysis. (3 marks] 2) Prepare all necessary equity accounting entries for the year ended 30 June 2018. (12 marks]]