Consolidation: non-controlling interest(NCI) - Partial goodwill method (AUSTRALIA)

Laura Ltd purchased 97% of the issued shares of Chris Ltd for $1,759,000 on 1 July 2018 when the equity of Chris Ltd was as follows;

Share capital $703,600 Asset Revaluation surplus $527,700 Retained earnings $263,850

At this date, Chris 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 Life (Years)
Inventories		$52,800	$58,100
Land		$132,000	$145,000
Equipment	$205,000	$164,000	$197,000	8
Chris Ltd identified at acquisition date a contingent liability related to a lawsuit where Chris Ltd was sued by a former supplier			$21,000
Chris Ltd had unrecorded and internally generated Patent with the fair value of :			$53,000
Chris Ltd had unrecorded and internally generated in-process research and development with the fair value of :			$40,000

-60% of inventory on hand at 1 July 2018 were sold by 20 June 2019. Further life of the assets is listed on the above table. -Partial goodwill method is under use and the tax rate is 30%

1. Prepare the acquisition analysis at acquisition date. 2. Prepare the business combination valuation entries and pre-acquisition entry at acquisition date. 3. Prepare the journal entry to recognize NCI at acquisition date. 4. Explain how the step 1 to 4 will change if the full goodwill method is used. 5. List and explain the accounting standard issues relevant to the consolidation process. 6. Compare in detail the current situation with the case that Laura Ltd acquires only 20% of issued shares of Chris Ltd with a significant influence on Carl Ltd.