As part of a corporate expansion plan, Volans Ltd. acquired the shares (cum div.) of Tucana Ltd. on January 1, 2012, for $138,000 cash. The statements of financial position of both companies at December 31, 2011, were as follows:
All of Tucana’s identifiable assets and liabilities were recorded at fair value as at January 2012, except for the following:
The plant is expected to have a further useful life of five years. Inventory held at January 1, 2012, was all sold by December 31, 2012. The dividend payable at January 1, 2012, was paid in June 2012. The company tax rate is 30%.
(a) Prepare the consolidated statement of financial position for Volans and its subsidiary, Tucana, as at January 1, 2012.
(b) Prepare the consolidated financial statement adjustments for Volans and its subsidiary, Tucana, as at December 31, 2012, and 2013.

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