Applying accounting standards issues relevant to the consolidation process, required. 1. The consolidation worksheet entries at 30 June 2020. Assume a profit for rex Ltd for the year ended 30 June 2020 of $6862100.

Sam Ltd purchased 97% of the issued shares(Ex div) of Rex Ltd for $879000 on 1 July 2019 when the equity of Rex Ltd was as follows; Share capital 351600 Retained earnings 263700 General reserve 131850 At this date, Rex Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; Account Cost Carrying Amount Fair value Further Inventories $26,400 $29,000 Land $66,000 $73,000 Equipment $ 102,500 $82,000 $98,000 5 Rex Ltd identified at acquisition date a lawsuit Contingent Liability where Rex Ltd was sued by a former supplier with the Fairvalue of: $11,000 Unrecorded Asset Rex Ltd had unrecorded and internally generated Patent with the FairValue of: $26,000 Unrecorded Asset Rex Ltd had unrecorded and internally generated in-process research and development with the FairValue of: $20,000 30% of inventory were sold by 30 June 2020. Further life of the assets are listed on the above table. Partial goodwill method is under use and Tax rate:30%