Reference no: EM133013600

Question - 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 $47,000

Fair value $70,000

Inventory:

Carrying amount $23,000

Fair value $21,000

Equipment:

Carrying amount $50,000

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:

Required - Prepare entries for the required consolidation data adjustments on 31 December 20X4, the year end.