Prepare consolidation worksheet entries for the preparation

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Question - On 1 July 2019 Sugar Ltd acquired 90% of the shares of Glider Ltd for $565,240. At this date the equity of Glider Ltd consisted of share capital of $370,000 and retained earnings of $190,000. All the identifiable asset and liabilities of Glider Ltd were recorded at amounts equal to fair value except for:

 

Carrying amount

Fair Value

Land

$180,000

$200,000

Plant (cost $380,000)

$300,000

$330,000

Inventories

$25,000

$35,000

The plant was considered to have a further 10-year life. All the inventory was sold by 30 June 2020. The tax rate is 30%. Sugar Ltd uses the partial goodwill method.

During the 2019-20 period Glider Ltd recorded a profit of $30,000.

Required - Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Sugar Ltd at 30 June 2020.

Reference no: EM133042381

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