Larry Ltd purchased all the shares of John Ltd on 31 December 20X3. John's assets were...

 

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Larry Ltd purchased all the shares of John Ltd on 31 December 20X3. John's assets were recorded at fair value except for the following: Land: Carrying amount $47 000 Fair value $70 000 Inventory: Carrying amount $23 000 Fair value $21 000 Equipment: Carrying amount $50 000 Fair value $75 000 Additional information for the above assets: • John uses the AASB 116 cost model to measure the land and equipment. However, for group/consolidation purposes, revaluation to fair value is the model applied. • Fair value of the land at 31 December 20X4 was $90,000. • John's inventory held at the control date was still in stock as at 31 December 20X4. • The equipment had a remaining useful life of 5 years at the control date. The residual value is nil. The equipment originally cost $70,000. Required: Prepare entries for the required consolidation data adjustments on 31 December 20X4, the year end. (9 marks) Reminder: No marks will be awarded for workings/calculations. Narrations are not required for the entries. Please provide your answer in the answer space below. Clearly label the DR and CR sides for each entry (otherwise no marks). Larry Ltd purchased all the shares of John Ltd on 31 December 20X3. John's assets were recorded at fair value except for the following: Land: Carrying amount $47 000 Fair value $70 000 Inventory: Carrying amount $23 000 Fair value $21 000 Equipment: Carrying amount $50 000 Fair value $75 000 Additional information for the above assets: • John uses the AASB 116 cost model to measure the land and equipment. However, for group/consolidation purposes, revaluation to fair value is the model applied. • Fair value of the land at 31 December 20X4 was $90,000. • John's inventory held at the control date was still in stock as at 31 December 20X4. • The equipment had a remaining useful life of 5 years at the control date. The residual value is nil. The equipment originally cost $70,000. Required: Prepare entries for the required consolidation data adjustments on 31 December 20X4, the year end. (9 marks) Reminder: No marks will be awarded for workings/calculations. Narrations are not required for the entries. Please provide your answer in the answer space below. Clearly label the DR and CR sides for each entry (otherwise no marks).

Answer rating: 100% (QA)

On consolidation date Land Inventory Equipment will be sho... View the full answer