n 1 July 2019 Sugar Ltd acquired 90% of the shares of Glider Ltd for $565 240. At this date the equity of Glider Ltd consisted of share capital of $370 000 and retained earnings of $190 000. All the identifiable asset and liabilities of Glider Ltd were recorded at amounts equal to fair value except for: Carrying amount Fair Value Land $180 000 $200 000 Plant (cost $380 000) $300 000 $330 000 Inventories $25 000 $35 000 The plant was considered to have a further 10-year life. All the inventory was sold by 30 June 2020. The tax rate is 30%. Sugar Ltd uses the partial goodwill method. During the 2019–20 period Glider Ltd recorded a profit of $30 000. Required Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Sugar Ltd at 30 June 2020.
On 1 July 2019 Sugar Ltd acquired 90% of the shares of Glider Ltd for $565 240. At this date the equity of Glider Ltd consisted of share capital of $370 000 and
|
|
Carrying amount |
Fair Value |
|
Land |
$180 000 |
$200 000 |
|
Plant (cost $380 000) |
$300 000 |
$330 000 |
|
Inventories |
$25 000 |
$35 000 |
The plant was considered to have a further 10-year life. All the inventory was sold by 30 June 2020. The tax rate is 30%. Sugar Ltd uses the partial
During the 2019–20 period Glider Ltd recorded a profit of $30 000.
Required
Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Sugar Ltd at 30 June 2020.
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