On 1 July 2019, Ria Ltd acquired 80% of the issued shares of Lee Ltd for $165
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Question:
On 1 July 2019, Ria Ltd acquired 80% of the issued shares of Lee Ltd for $165 000. At this date, the equity of Lee Ltd was:
Share capital | $100 000 |
General reserve | 40 000 |
Retained earnings | 50 000 |
At acquisition date all the identifiable assets and liabilities of Lee Ltd were recorded at amounts equal to fair value. At 30 June 2021, the equity of Lee Ltd consisted of:
Share capital | $100 000 |
General reserve | 50 000 |
Retained earnings | 80 000 |
During the 2020–21-year Lee Ltd recorded a profit of $15 000.
Required:
Prepare the consolidated worksheet entries at 30 June 2021 for Ria Ltd assuming:
- At 1 July 2019, the fair value of the non-controlling interest was $39 000 and Ria Ltd adopts the full goodwill method.
- Ria Ltd adopts the partial goodwill method.
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