This assignment consists of a Practical Exercise to be completed by setting up a

spread sheet using Microsoft Excel. This assignment needed Acquisition analysis , Journal entries with narrations , Assumptions , Format of financial statement (with headers and sub-headers, titles, etc.) , Correct use of consolidation worksheet, Justification of the two differences , Suggestions to address the differences , Citation of relevant accounting standards and Peer evaluation . Help me to solve this assignment , thank you .

Prime Ltd is a company specialising in the manufacturing of high quality door frames for both local and international market. In order to achieve operational efficiency, Prime Ltd acquired 60% of the issued share capital (cum div) of Crame Ltd, a smaller company in the same industry, on 1 April 2022. On this date, the accounts of Crame Ltd included the following balances: All the identifiable net assets of Crame Ltd were recorded at fair value except for the following: Crame Ltd did not revalue the land as well as the plant and equipment accordingly. According to the tax ruling, the land has no tax effect hence no deferred tax adjustment is needed. The remaining us eful life of the plant and equipment was 8 years. Crame Ltd still retained these plant and equipment as at 31 December 2023. The trial balances for both companies as at 31 December 2023 are as shown below: The following information was extracted from the financial statements of Prime Ltd and Crame Ltd for the financial year ended 31 December 2023: (i) In June 2023, Crame bought an equipment for $300,000. However, this equipment was foun to be not suitable for Crame Ltd's operation. On 30 June 2023, Crame Ltd sold this equipmen on credit, to Prime Ltd for $200,000. At that time, the estimated useful life of the equipment wa 10 years with no residual value. The selling price and carrying amount of this equipment wer recorded in Sales and Cost of sales accounts respectively. At the end of financial year 2023 Prime Ltd still owed Crame Ltd $30,000. (ii) On 30 June 2022, Prime Ltd had given a loan of $100,000 to Crame Ltd. Interest on the loa was 12% per annum. Both companies accrued for the interest on a monthly bas is and interes is to be paid six-monthly in arrears on 31 March and 30 September respectively. (iii) The intercompany sales for the year, from Crame Ltd to Prime Ltd, amounted to $1,250,000 Crame Ltd has marked up the inventory by 30% based on cost to derive at its selling price. 40% of these inventories still remain on hand in the accounts of Prime Ltd on 31 December 2023 There was still $54,000 owing from Prime Ltd from these purchases at the year end and thi balance was included in the trade receivable and trade payable respectively. (iv) Included in the opening inventory of Prime Ltd was some inventory bought from Crame Ltd the previous year. The cost price to Prime Ltd was $80,000. The profit margin was 20% o selling price. This inventory has been sold to third parties in 2023 for $125,000 in total. (v) Goodwill on consolidation is impaiment-tested on an annual basis. An impairment of 20% o the initial amount of goodwill was accounted for in each of the financial years ended 3 December 2022 and 31 December 2023. (vi) There were no issue of shares in both companies subsequent to the acquisition. (vii) The income tax rate applicable to both companies was 30%. (viii) Prime Ltd used the full goodwill method to consolidate Crame Lid. (ix) All dividends paid were from post-acquisition profits. REQUIRED: (a) Prepare the Acquisition Analysis as at 1 April 2022 showing clearly all relevant workings; (b) Prepare the Consolidation Worksheet Journal Entries to consolidate Prime Ltd and Crame Ltd for the financial year ended 31December2023; State any assumptions where needed. The Joumal Entries must include narrations and supporting computations (where relevant). (c) Prepare the Consolidation Worksheet showing the consolidation journal entries by setting up a spreadsheet using Microsoft Excel or any other similar software package; and (d) Prepare the Consolidated Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2023 and Consolidated Statement of Financial Position as at 31 December 2023 for Prime Ltd and its subsidiary. (e) The board of directors of Prime Ltd is discussing a potential acquisition of a milling company called Milly Ltd where the financial year end is on 31 March. Milly Ltd was incorporated three years ago and it has yet to generate a good retum on the investment. If the acquisition is successful, the board plans to exclude Mlly Ltd from its consolidation due to its nature of business is very different from those of Prime and its subsidiary, and different financial year end. Discuss whether these two reasons are justifiable for the exclusion of Milly Ltd, citing relevant accounting standards to support your answer. You answer should include some suggestions to address these two differences cited by the directors of Prime Ltd. Prime Ltd is a company specialising in the manufacturing of high quality door frames for both local and international market. In order to achieve operational efficiency, Prime Ltd acquired 60% of the issued share capital (cum div) of Crame Ltd, a smaller company in the same industry, on 1 April 2022. On this date, the accounts of Crame Ltd included the following balances: All the identifiable net assets of Crame Ltd were recorded at fair value except for the following: Crame Ltd did not revalue the land as well as the plant and equipment accordingly. According to the tax ruling, the land has no tax effect hence no deferred tax adjustment is needed. The remaining us eful life of the plant and equipment was 8 years. Crame Ltd still retained these plant and equipment as at 31 December 2023. The trial balances for both companies as at 31 December 2023 are as shown below: The following information was extracted from the financial statements of Prime Ltd and Crame Ltd for the financial year ended 31 December 2023: (i) In June 2023, Crame bought an equipment for $300,000. However, this equipment was foun to be not suitable for Crame Ltd's operation. On 30 June 2023, Crame Ltd sold this equipmen on credit, to Prime Ltd for $200,000. At that time, the estimated useful life of the equipment wa 10 years with no residual value. The selling price and carrying amount of this equipment wer recorded in Sales and Cost of sales accounts respectively. At the end of financial year 2023 Prime Ltd still owed Crame Ltd $30,000. (ii) On 30 June 2022, Prime Ltd had given a loan of $100,000 to Crame Ltd. Interest on the loa was 12% per annum. Both companies accrued for the interest on a monthly bas is and interes is to be paid six-monthly in arrears on 31 March and 30 September respectively. (iii) The intercompany sales for the year, from Crame Ltd to Prime Ltd, amounted to $1,250,000 Crame Ltd has marked up the inventory by 30% based on cost to derive at its selling price. 40% of these inventories still remain on hand in the accounts of Prime Ltd on 31 December 2023 There was still $54,000 owing from Prime Ltd from these purchases at the year end and thi balance was included in the trade receivable and trade payable respectively. (iv) Included in the opening inventory of Prime Ltd was some inventory bought from Crame Ltd the previous year. The cost price to Prime Ltd was $80,000. The profit margin was 20% o selling price. This inventory has been sold to third parties in 2023 for $125,000 in total. (v) Goodwill on consolidation is impaiment-tested on an annual basis. An impairment of 20% o the initial amount of goodwill was accounted for in each of the financial years ended 3 December 2022 and 31 December 2023. (vi) There were no issue of shares in both companies subsequent to the acquisition. (vii) The income tax rate applicable to both companies was 30%. (viii) Prime Ltd used the full goodwill method to consolidate Crame Lid. (ix) All dividends paid were from post-acquisition profits. REQUIRED: (a) Prepare the Acquisition Analysis as at 1 April 2022 showing clearly all relevant workings; (b) Prepare the Consolidation Worksheet Journal Entries to consolidate Prime Ltd and Crame Ltd for the financial year ended 31December2023; State any assumptions where needed. The Joumal Entries must include narrations and supporting computations (where relevant). (c) Prepare the Consolidation Worksheet showing the consolidation journal entries by setting up a spreadsheet using Microsoft Excel or any other similar software package; and (d) Prepare the Consolidated Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2023 and Consolidated Statement of Financial Position as at 31 December 2023 for Prime Ltd and its subsidiary. (e) The board of directors of Prime Ltd is discussing a potential acquisition of a milling company called Milly Ltd where the financial year end is on 31 March. Milly Ltd was incorporated three years ago and it has yet to generate a good retum on the investment. If the acquisition is successful, the board plans to exclude Mlly Ltd from its consolidation due to its nature of business is very different from those of Prime and its subsidiary, and different financial year end. Discuss whether these two reasons are justifiable for the exclusion of Milly Ltd, citing relevant accounting standards to support your answer. You answer should include some suggestions to address these two differences cited by the directors of Prime Ltd