The inventory was all sold to external parties by $30$ June $2024.$ The plant had a remaining useful life of $7$ years from $1$ July $2023$ and is depreciated on a straight$-$

line basis.

Additional Information:

Precision Ltd uses the partial goodwill method.

Precision Ltd sold $$40,000$ in inventory to Sunrise Holdings Ltd during the year ended $30$ June $2024.$ Precision Ltd had recorded a profit of $$4,000$ before tax on these

transactions. On $30$ June $2024,$ a quarter of this inventory had been sold to external parties, and the remaining is still on hand with Sunrise Holdings Ltd$.$

On $1$ January $2024,$ Precision Ltd loaned $$50,000$ to Sunrise Holdings Ltd$.$ Interest on the loan for the period $1$ January to $30$ June $2024$ amounted to $$3,500$ and was

paid by Sunrise Holdings Ltd on $30$ June $2024.$

During the financial year ended $30$ June $2024,$ the profits, and dividends for both the entities are summarised below:

Assume a tax rate of $30\%.$

Required:

Prepare the acquisition analysis and consolidation journal entries, including any NCI entries, necessary to prepare for the consolidated financial statements for

the year ended $30$ June $2024.$

Note: you are NOT required to prepare a consolidation worksheet, or the consolidated financial statements.

Attach FileOn $1$ July $2023,$ Precision Ltd purchased $80\%$ of the shares in Sunrise Holdings Ltd for $$385,000.$ On this date, the equity of Sunrise Holdings Ltd consisted of:

All of the identifiable net assets of Sunrise Holdings Ltd were equal to their fair value except for the following assets:

The inventory was all sold to external parties by $30$ June $2024.$ The plant had a remaining useful life of $7$ years from $1$ July $2023$ and is depreciated on a straight$-$

line basis.

Additional Information:

Precision Ltd uses the partial goodwill method.

Precision Ltd sold $$40,000$ in inventory to Sunrise Holdings Ltd during the year ended $30$ June $2024.$ Precision Ltd had recorded a profit of $$4,000$ before tax on these

transactions. On $30$ June $2024,$ a quarter of this inventory had been sold to external parties, and the remaining is still on hand with Sunrise Holdings Ltd$.$

On $1$ January $2024,$ Precision Ltd loaned $$50,000$ to Sunrise Holdings Ltd$.$ Interest on the loan for the period $1$ January to $30$ June $2024$ amounted to $$3,500$ and was

paid by Sunrise Holdings Ltd on $30$ June $2024.$

During the financial year ended $30$ June $2024,$ the profits, and dividends for both the entities are summarised below: