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report on Consolidated financial statements and calculations - Individual assessment.Purpose: This assessment is designed to allow students to research and analyse accounting standards and interpret

report on Consolidated financial statements and calculations - Individual assessment.Purpose: This assessment is designed to allow students to research and analyse accounting standards and interpret how they apply to various corporate groups. It enables students to identify and solve problems relating to accounting for consolidated groups. This relates to learning outcomes a, b and c.Value: 30% Due Date: Week 10- Friday 8:00 pm.Topic: Consolidation worksheet with adjustment entries for intragroup transactions: inventories, PPE, dividends, and debentures.Task Details:On 1 July 2021, Ingrid Ltd acquired all the issued shares of Isabella Ltd. The consideration for the acquisition was $47350 cash plus 100000 shares in Ingrid Ltd, which had a fair value of $2 per share.At the acquisition date, Isabella Ltd had inventories with a fair value $1500 greater than carrying amount.All these inventories were sold by Isabella Ltd prior to 30 June 2022.Isabella Ltd conducts a research and development division. It has expensed all past outlays. At the acquisition date, Ingrid Ltd assessed there was an in-process research and development asset with a fair value of $12000. Ingrid decided that $3000 of this asset should be impaired for the year to 30 June 2022.The income tax rate is 30%.Intragroup transactions occurring in the annual period ended 30 June 2022 were as follows.(a) During the course of the year, Isabella Ltd sold inventories to Ingrid Ltd. Total sales were $60000, these being sold at cost plus 25%. At 30 June 2022, Ingrid Ltd still held inventories that it had bought from Isabella Ltd for $15000.(b) On 1 January 2022, Ingrid Ltd acquired 900 $1008% debentures previously issued by Isabella Ltd.These were acquired on the open market for $85500. Interest on debentures is paid half-yearly. Interest due on 30 June 2022 has been paid by Isabella Ltd.(c) On 1 April 2022, Ingrid Ltd sold an inventory item to Isabella Ltd for $45000. This asset had cost Isabella Ltd $36000 to manufacture. The asset is used by Isabella Ltd as part of its plant and machinery.The depreciation rate used by Isabella Ltd for this type of asset is 20% p.a. on cost.(d) On 1 March 2022, Isabella Ltd declared and paid a dividend of $14700 from its profits. On 30 June 2022, Isabella Ltd declared a further dividend of $10800.The financial information provided by the two entities for 30 June 2022 was as follows:SalesDividend revenueIngrid Ltd$ 35210025500Isabella Ltd$ 2720005000Other income/gains1000023000387600300000Cost of sales(184500)(180000)Other expenses(51900)(33000)(236400)(213000)Profit before income tax15120087000Income tax expense(48000)(30000)Profit for the year10320057000Retained earnings (1/7/21)360001800013920075000Dividend paidDividend declared(51000)(14700)(36000)(10800)(87000)(25500)Retained earnings (30/6/22)5220049500Share capital480000180000General reserve10200036000Total equity$ 634200$ 265500Deferred tax liabilities$ 19500$ 75008% debentures0120000Dividend payable2400010800Provisions1800035460Payables1650015000Total liabilities$ 78000$ 188760Total equity and liabilities$ 712200$ 454260Plant and machinery160000165000Accumulated depreciation(60000)(39000)Land143450225000Debentures in Isabella Ltd85500Shares in Isabella Ltd247350Cash11505260Receivables3175015500Inventories10300082500Total assets$ 712200$ 454260

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