University : Torrens University Australia UniLearnO is not sponsored or endorsed by this college or university.
Country : Australia
Assignment Task:

Task:

Question 1
On 1 July 2018, Parent Ltd acquired all the issued shares of Subsidiary Ltd for $20000 cash and issued #50000 ordinary shares in Parent Ltd at $5 each. At this date the equity of Sub Ltd consisted of share capital of $140 000, general reserve of $24 000 and retained earnings of $42 000. At the time of acquisition, there was cum dividend declared by Sub Ltd of $5,000 and recorded goodwill of $7,000.
All the identifiable assets and liabilities of Sub Ltd were recorded at amounts equal to fair value except for:
Plant and equipment: $100,000 (carrying amount, cost was $115,000), Fair value 180,000 remaining life 4 years; and was depreciated on a straight-line basis. Inventory: $41,000 (carrying amount), Fair value $50,000 Contingent liabilities for lawsuit, Fair value $60,000

 

Question 2
On 1 July 2019, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in Fluffy Ltd valued at $3 per share. At this date, the equity of Glider Ltd consisted of $66 000 share capital and $6000 retained earnings also there was ex-dividend payable of $5,700. At 1 July 2019, all the identifiable assets and liabilities of Glider Ltd were recorded at amounts equal to their fair values except for:

The plant was considered to have a further 5-year life. The inventory was all sold by 30 June 2020. Additional information
(a) During the 2019–20, Fluffy Ltd sold inventory to Glider Ltd for $21 000. None of this was on hand at 30 June 2020.
(b) During the 2019–20, Glider Ltd sold goods to Fluffy Ltd for $4500. Original cost of the inventory was $2,000. At 30 June 2020, all inventories were held by Fluffy Ltd.
(c) On 1 July 2019, Glider Ltd sold an item of plant to Fluffy Ltd for $15000. This plant had a carrying amount in the records of Glider Ltd of $14000 at time of sale. This type of plant is depreciated at 10% p.a. on cost.
(d) On 1 January 2019, Fluffy Ltd sold an item of inventory to Glider Ltd for $18000. The inventory had cost Fluffy Ltd $16 000. This item was classified by Glider Ltd as plant. Plant of this type is depreciated by Glider Ltd at 20% p.a.
(e) On 1 March 2020, Glider Ltd sold an item of plant to Fluffy Ltd. Whereas Glider Ltd classified this as plant, Fluffy Ltd classified it as inventory. The sales price was $9000 which included a profit to Glider Ltd of $1500. Fluffy Ltd sold this to another entity on 31 March for $9900.
(f) Glider Ltd has declared dividends in May 2020, which remained unpaid by 30 June 2020.
(g) In March 2020, Fluffy Ltd sold inventories to Glider Ltd on credit for $5000. These inventories were purchased by Fluffy Ltd for a cost of 1000. Half of the inventory was sold to Golden Ltd for $8000 by 30 June 2020. 80% of the credit sales to Glider Ltd remained unpaid.

 

Question 3
On 1 July 2017, Investor Ltd acquired 20% of Associate Ltd voting shares and obtained significant influence over Associate Ltd. The following transactions occurred during the year ended 30 June 2020:
• Associate Ltd paid dividends of $10,000.
• Associate Ltd’s profit after tax was $5,000.
• Investor Ltd sold inventory to Associate Ltd for $500,000 and it had originally cost Investor Ltd $250,000. 5% of the inventory remains on hand at year end.
• Associate Ltd recognised in its financial statements a revaluation increment of $60,000 on its investments in land.

 

This Accounting and Finance Assignment has been solved by our Accounting and Finance Experts at onlineassignmentbank. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

  • Uploaded By : admin
  • Posted on : December 09th, 2018
  • Downloads : 0

Whatsapp Tap to ChatGet instant assistance