50.1K

Verified Solution

Link Copied!

Assigment Question On 01 July 2020 Winter Manufacturing Ltd acquired all the issued shares of Summer Lid for 3 120000 The equity of Summer at this date is as follows: Share capital $ 75000 Retained earrings 26000 Asset revaltion suplus 12000 Al the identifiable assets and iabilties of Summer Lid were recorded at amounts equal to their fair values at acquisition date except for Carrying amount Fair value Inventory 30500 31500 Machine (the cost is 150000) 137000 138000 10 years The equipment was considered to have a further useful life of the inventory 60% was sold by 30 June 2021 The folowing information was provided by the two companies at 30 June 2021 Profit before tax Income tax expense Profit for the year Retained earnings (01/07/2020) Retained earnings (30/06/2021) Share capital Retained earnings General reserve Asset revaluation supus liabities Winter Summer 111000 85000 75000 24500 36000 60500 80000 26000 144000 86500 360000 75000 144000 86500 10000 0 18500 12000 128500 22000 661000 195500 250000 28000 350000 150000 - 114000 -13000 55000 30500 120000 0 681000 995500 Land Plant and Equipment Accumulated depreciation inventory Investment in Summer In addition, there are some intra-group transactions between Winter and Summer shown below. a. During the year, Winter sokl inventory costing 3200 to Summer for 5000. At the end of the year, 30% of the inventory is stil held on hand by Winter b, on 1 Juy 2020, Winter sold a plant to Summer. The plant has carrying amount of 88,000 Winter sold it to Summer for 90,000 The remaining useful life is estimated to be 5 years. Required Prepare the Acquisition analysis. Consolidation Adjustments, Worksheet and consoldated financial statements of Winter Manufacturing Led at 30 June 2021 using consolidation worksheet

Answer & Explanation Solved by verified expert

See Answer