SECTIONF: Non-Controlling interest-NCI

On 1 July 2019, Max Ltd acquired 95% of the shares of Rex Ltd for $950000. At this date, the equity of Rex Ltd consisted of;

Share Capital $600 000

General Reserves $75 000

Retained earnings $150 000

all the identifiable assets and liabilities of Rex Ltd were recorded at amounts equal to fair value except for;

Carrying Amount Fair value

Land $200 000 $270 000

Inventory $35 000 $43 000

The land is still on hand with Rex Ltd at 30 June 2020. The tax rate is 30%.partial goodwill method is under use.

Required:

1- Acquisition analysis at 1 July 2019

2- Business combination valuation entries at 1 July 2019

3- Pre-acquisition entries at 1 July 2019

4-NCI Step 1: NCI share of equity at acquisition date 1 July 2019