Solution-Prepare entries for the required consolidation data

Prepare entries for the required consolidation data

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Reference no: EM132996309

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

Reference no: EM132996309

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Prepare entries for the required consolidation data

Reference no: EM132996309

Reference no: EM132996309

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