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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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