On 1 July 2019 Sugar Ltd acquired 90% of the shares of Glider Ltd for...
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Accounting
On 1 July 2019 Sugar Ltd acquired 90% of the shares of Glider Ltd for $565 240. At this date the equity of Glider Ltd consisted of share capital of $370 000 and retained earnings of $190 000. All the identifiable asset and liabilities of Glider Ltd were recorded at amounts equal to fair value except for:
Carrying amount
Fair Value
Land
$180 000
$200 000
Plant (cost $380 000)
$300 000
$330 000
Inventories
$25 000
$35 000
The plant was considered to have a further 10-year life. All the inventory was sold by 30 June 2020. The tax rate is 30%. Sugar Ltd uses the partial goodwill method.
During the 2019-20 period Glider Ltd recorded a profit of $30000.
Required
Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Sugar Ltd at 30 June 2020.
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