QUESTIONS Total 40 marks Smiles Ltd purchased 100% of the shares of Degrees Lid on 1 July 2019 for $820,000 (cum div). At that date the financial statements of Degrees Ltd showed the following amounts: Share0,000 Retained 23.00 General Reserve 10.000 Devided Payale 20.000 At 1 July 2019 all of the identifiable assets of Degrees Lad were recorded at fair value except for the following: Caring Faire Ivory 550.000 Machinery215.000 190.000 220,000 At 1 July 2019 Degrees Ltd had a contingent liability of $50,000 relating to a lawsuit for damaged goods that had not been recorded in the accounts. This lawsuit was settled in November 2019, and Degrees Lid was required to pay $44,000 in damages. All of the above inventory was sold by December 2019. The machinery had a further 4-year useful life. Any valuation adjustments are made on consolidation Additional information: During the year. Sed solidny to Depend for 510.000,- 23% cot. Aty and, Depressdal hd 25% of this my hand On January 2010 Degrees Lalo Sales Lai to plan for $23,000. The plant originally contraprend $25.000 and writtendente 16.000 the trappale Semis depreciates plant theme of Spec During the year ended 30 June 2020 Sales La charged Depreness for IN) AT 30 June 2009, the balance is the retained laminas count for Sale 564.90 and forget 16AC At 30 2020. predicted a dividendes25.000 This dividend pudin Requirements: Question 5 continued. Prepare the way why 2019 the eary to prepared financial calculate the balance in the Code Reading 30 June 2000. Sudadera QUESTIONS Total 40 marks Smiles Ltd purchased 100% of the shares of Degrees Lid on 1 July 2019 for $820,000 (cum div). At that date the financial statements of Degrees Ltd showed the following amounts: Share0,000 Retained 23.00 General Reserve 10.000 Devided Payale 20.000 At 1 July 2019 all of the identifiable assets of Degrees Lad were recorded at fair value except for the following: Caring Faire Ivory 550.000 Machinery215.000 190.000 220,000 At 1 July 2019 Degrees Ltd had a contingent liability of $50,000 relating to a lawsuit for damaged goods that had not been recorded in the accounts. This lawsuit was settled in November 2019, and Degrees Lid was required to pay $44,000 in damages. All of the above inventory was sold by December 2019. The machinery had a further 4-year useful life. Any valuation adjustments are made on consolidation Additional information: During the year. Sed solidny to Depend for 510.000,- 23% cot. Aty and, Depressdal hd 25% of this my hand On January 2010 Degrees Lalo Sales Lai to plan for $23,000. The plant originally contraprend $25.000 and writtendente 16.000 the trappale Semis depreciates plant theme of Spec During the year ended 30 June 2020 Sales La charged Depreness for IN) AT 30 June 2009, the balance is the retained laminas count for Sale 564.90 and forget 16AC At 30 2020. predicted a dividendes25.000 This dividend pudin Requirements: Question 5 continued. Prepare the way why 2019 the eary to prepared financial calculate the balance in the Code Reading 30 June 2000. Sudadera