A. Prepare the acquisition analysis at 1 July 2013.

B. Prepare the BCVR and pre-acquisition journal entries at 1 July 2013.

ACCT2201 GROUP CASE STUDY On 1 July 2013 Douglas Ltd acquired all of the share capital (cum div)of Nanette Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but now had a fair value of $34,000. At the date of acquisition Nanette's accounts showed a dividend payable of $10,000. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of: ASSET Book Value Market Value Inventory 10,000 14,000 Land 25,000 30,000 Plant 20,000 (less depn) 3,000 17,000 22,000 Acounts Receivable 16,000 14,000 The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $14,000 The land was sold on 30/12/16 for $32000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Nanette Ltd consisted of: Share Capital 380,000 General Reserve 70,000 Retained Earnings 62,000 ACCT2201 GROUP CASE STUDY On 1 July 2013 Douglas Ltd acquired all of the share capital (cum div)of Nanette Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but now had a fair value of $34,000. At the date of acquisition Nanette's accounts showed a dividend payable of $10,000. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of: ASSET Book Value Market Value Inventory 10,000 14,000 Land 25,000 30,000 Plant 20,000 (less depn) 3,000 17,000 22,000 Acounts Receivable 16,000 14,000 The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $14,000 The land was sold on 30/12/16 for $32000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Nanette Ltd consisted of: Share Capital 380,000 General Reserve 70,000 Retained Earnings 62,000