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On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd...

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Accounting

On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd for $750,000 when the equity of Accounting Ltd consisted of:
Share Capital
$400,000
Retained Earnings
$150,000
Asset Revaluation reserve
$50,000
At the acquisition date all the identifiable assets and liabilities of Accounting Ltd were recorded at fair value except for the following assets:
Carrying Amount
Fair Value
Equipment (Cost $100,000)
$160,000
$200,000
Land
$560,000
$700,000
The NCI at acquisition date is measured based on the proportionate share of the identifiable assets and liabilities in Accounting Ltd. The tax rate is 30%.
Required
Prepare Acquisition analysis as at 1 July 2021

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