Alma Ltd. Acquires all the issued shares (ex div.) of Davis Ltd on 1 July 2018...

Alma Ltd. Acquires all the issued shares (ex div.) of Davis Ltd on 1 July 2018 for $2285382. At this time of date Davis Ltd. recorded a dividend payable of $46000 and equity of the following –

Share capital	$800000
Asset Revaluation surplus	$343000
Retained Earnings	$274000

All the identifiable assets and liabilities of Davis Ltd. were recorded at amount equals to their fair values at acquisition date except for the following-

	Cost	Carrying amount	Fair value
Inventory		343000	617000
Land		686000	1235000
Vehicle	$960000	800000	1440000	4 years

Out of inventory 90% was sold by 30^th June,2019 and remaining sold by 30^th June,2020.

In May 2019 Davis transferred $137000 from retained earnings at 1 July,2018 to Asset Revaluation Surplus. Tax rate 30%.

Prepare acquisition analysis at 1 July,2018
Prepare consolidation worksheet entries at 30 June,2019.

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ekkarill92 answered 1 year ago

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