Larry Ltd purchased all the shares of John Ltd on 31 December 20X3. John's assets...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Larry Ltd purchased all the shares of John Ltd on 31 December 20X3. John's assets were recorded at fair value except for the following:
Land:
Carrying amount
$47000
Fair value
$70000
Inventory:
Carrying amount
$23000
Fair value
$21000
Equipment:
Carrying amount
$50000
Fair value
$75 000
Additional information for the above assets:
John uses the AASB 116 cost model to measure the land and equipment. However, for group/consolidation purposes, revaluation to fair value is the model applied.
Fair value of the land at 31 December 20X4 was $90,000.
John's inventory held at the control date was still in stock as at 31 December 20X4.
The equipment had a remaining useful life of 5 years at the control date. The residual value is nil. The equipment originally cost $70,000.
Required:
Prepare entries for the required consolidation data adjustments on 31 December 20X4, the year end.(9 marks)
Reminder: No marks will be awarded for workings/calculations. Narrations are not required for the entries.
Please provide your answer in the answer space below.Clearly label the DR and CR sides for each entry (otherwise no marks).
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
