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Unicorn Ltd acquired 80% of the issued shares of Pegasus Ltd for $685,700 on 1 July 2020. The financial statements of Pegasus Ltd showed the
Unicorn Ltd acquired 80% of the issued shares of Pegasus Ltd for $685,700 | ||||
on 1 July 2020. The financial statements of Pegasus Ltd showed the following items of equity: | ||||
Share capital | $565,500 | |||
Retained earnings | $247,400 | |||
At acquisition date all the identificable assets and liabilities of Pegasus Ltd were recorded at | ||||
amounts equal to fair value except for the following: | ||||
Carrying amount | Fair value | |||
Land | $395,900 | $424,100 | ||
During the year end 30 June 2021, Pegasus Ltd recorded at profit of $84,800. | ||||
The tax rate is 30%. | ||||
Required: | ||||
Show the acquisition analysis as at 1 July 2020 and prepare the consolidated worksheet | ||||
entries at 30 June 2021 for Unicorn Ltd assuming that it adopts the partial goodwill method. |
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