Shohei Ltd owns 100% of Ohtani Ltd acquired on 1 July 2018 for $3 Million when the shareholders funds of Ohtani Ltd were: Share Capital 1,250,000 Retained Earnings 1,200,000 2,450,000 All assets of Ohtani Ltd were stated at fair value on the date of acquisition. (a) the directors believe that there has been an impairment loss on goodwill of $100,000 for the year ended 30 June 2021 (b) During the 2020-21 financial year Shohei Ltd sells inventory to Ohtani Ltd at a sales price of $800,000. The inventory cost Shohei Ltd $400,000 to produce. At 30 June 2021, 30% of the inventory is still on hand with Ohtani Ltd. The tax rate is 30% Record the consolidation entries for 30 June 2021
Shohei Ltd owns 100% of Ohtani Ltd acquired on 1 July 2018 for $3 Million when the shareholders funds of Ohtani Ltd were:
| Share Capital | 1,250,000 |
| 1,200,000 | |
| 2,450,000 |
All assets of Ohtani Ltd were stated at fair value on the date of acquisition.
(a) the directors believe that there has been an impairment loss on
(b) During the 2020-21 financial year Shohei Ltd sells inventory to Ohtani Ltd at a sales price of $800,000. The inventory cost Shohei Ltd $400,000 to produce. At 30 June 2021, 30% of the inventory is still on hand with Ohtani Ltd. The tax rate is 30%
Record the consolidation entries for 30 June 2021
Consolidation refers to the process of merging the books of accounts of the parent entity with its subsidiaries to present the financial statement as a whole group.
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