Prepare the consolidation worksheet entries in relation

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Bruno acquired all the issued shares of Mars Ltd on 1 July 2020. All the identifiable assets and liabilities of Mars Ltd on the date of acquisition were recorded at amounts equal to their fair values except inventory. The carrying amount of inventory was $5000 lower than its fair value. Of the inventory, 60% was sold by 30 June 2021 and the remaining 40% by 30 June 2022.

Problem 1: Prepare the consolidation worksheet entries in relation to inventory for Bruno's group at 30 June 2021 and 30 June 2022. Assume the company tax rate is 30%.

Reference no: EM132946497

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