On 1 July 2017, Adam Ltd acquired all of the shares of Beyer Ltd, on a cum-div . basis, for $2,700,000.
Plant (cost $300 000)240 000
280 000
The inventory on hand in Beyer Ltd at 1 July 2017 was sold in November 2017. The plant was estimated to have a further 5-year life with zero residual value. The land on hand at acquisition date was sold in March 2019. On 1 January 2019, the plant was sold to Autumn leaves Ltd for $230,000.
On 30 June 2018, goodwill was impaired by $8 500. The company applies the partial goodwill method. Tax rate is 30%.a) Prepare the acquisition analysis at 1 July 2017.
b) Prepare the consolidation worksheet entries at 30 June 2019. Your answer should include:
1. BCVR entries,
2.Pre-acquisition entries