Griffin Ltd acquired all the issued shares (cum div.) in Python Ltd on 1 July 2020, paying $905 000 cash.
Costs incurred in undertaking the acquisition amounted to $7 000, these did not relate to issuing the new shares.
On 30 June 2020, the financial statement of Python Ltd showed the following balances:
Share capital (12,000 shares @ 50 each)	$600,000
Retained earnings	$270,000
Dividend payable	$36,000
Goodwill	$17,500
All the identifiable assets and liabilities of Python Ltd at the acquisition date were recorded at amounts equal to their fair values except for:
	Carrying amount	Fair value
Inventory	$60,000	$52,000
Plant (Cost $1,250,000)	$875,000	$887,000
The assets recognised by Python Ltd did not include an internally generated patent of Python Ltd that was valued by Griffin Ltd at $28,000.
Its useful life was considered to be 4 years, with benefits being received equally over that period.
80% of the inventory on hand at the acquisition date was sold by 30 June 2021. The plant is expected to have a further useful life of 5 years. The tax rate is 30%.
Required:
Show the acquisition analysis as at 1 July 2020 and prepare the pre-acquisition consolidation worksheet at 30 June 2021,
Assume that goodwill is accounted for as a Business Combination Valuation Reserve (BCVR) entry.
Please perform your acquisition analysis at 1 July 2020 here: