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Assignment Question 227000 On 01 July 2020, Sunshine Manufacturing Ltd acquired all the issued shares of Goldcoast Ltd for $ The equity of Goldcoast at this date is as follows: Share capital $ 65000 Retained earnings 36000 All the identifiable assets and liabilities of Goldcoast Lid were recorded at amounts equal to their fair values at acquisition date except for. Inventory Machine (the cost is: Carrying amount 82000 54000 Fair value 88000 57000 78000) 5 years The equipment was considered to have a further useful life: of the inventory 80% was sold by 30 June 2021. The following information was provided by the two companies at 30 June 2021. Profit before tax Income tax expense Profit for the year Retained earnings (01/07/2020) Retained earnings (30/06/2021) Share capital Retained earnings General reserve Asset revaluation surplus liabilities Sunshine Goldcoast 112,000 12500 48,000 4200 64000 8300 80000 36000 144000 44300 360000 65000 144000 44300 10000 0 18500 0 128500 22000 661000 131300 129000 20000 360000 125600 -110000 -33000 55000 18700 227000 0 661000 131300 Land Plant and Equipment Accumulated depreciation inventory Investment in Goldcoast In addition, there are some intra-group transactions between Sunshine and Goldcoast shown below: a. During the year, Sunshine sold inventory costing 4500 to Goldcoast for 6000 . At the end of the year, 30% of the inventory is still held on hand by Goldcoast. b. on 1 Jannuary 2021, Goldcoast sold a plant to Sunshine. The plant has carrying amount of 115,000 Tomson sold it to Sunshine for 130,000 The remaining useful life is estimated to be 5 years. Required: Prepare the following on 30 June 2021. 1. Prepare the Acquisition analysis 2. Consolidation adjusting entries 3. Consolidation worksheet 4. Consolidated financial statements (including consolidated statemet of profit or loss and other comprehensive income, consolidated statement of equity and consolidated statement of financial position.)

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