On 1 Jan 2008, Platypus Ltd acquired 75% of the shares of Wombat Ltd
for $40,000. The following balances appeared in the records of Wombat
Ltd at this date:
Retained Earnings $10,000
At 1 Jan 2008, all the identifiable assets and liabilities of Wombat Ltd
were recorded at fair value except for the following:
The machinery had a remaining useful life of 5 years. The machinery
was sold by Wombat Ltd on 1 July 2012 for $4,000. By 31 Dec 2008,
receivables had all been collected and inventory sold. Tax rate is 30%.
For the year ended 31 Dec 2012, the following information is available:
(a) Intra-group sales were Wombat Ltd to Platypus Ltd - $40,000. The
mark-up on cost of all sales was 25%. At 31 Dec 2012, Platypus
Ltd sold 95% of the inventory acquired from Wombat Ltd.
(b) At 1 Jan 2012, inventory of Platypus Ltd included goods of
$1,000 resulting from a sale on 1 Sept 2011 of non-current assets
by Wombat Ltd at a profit of $200. These items were sold by
Platypus Ltd on 1 March 2012. This class of non-current assets is
depreciated using a 10% depreciation rate on a straight-line basis.
(c) On 1 July 2012, Wombat Ltd sold an item of plant to Platypus Ltd
for $2,000 at a profit of $800. For plant assets, Wombat Ltd applies
a 10% p.a. straight-line depreciation rate, and Platypus Ltd uses a
2.5% p.a. straight-line method.
(d) Financial information for the year ended 31 Dec 2012 includes the
Machinery (cost $36,000)
RE (1 Jan 2012)
Profit for the year
RE (31 Dec 2012)
Asset Revaluation Reserve (1 Jan 2012)
Gains on property revaluation (an OCI for the year)
Asset revaluation Reserve (31 Dec 2012)
Prepare the consolidation worksheet entries for the preparation
of the consolidated financial statements of Platypus Ltd at 31 Dec
2012 using the partial goodwill method.
Prepare the entries that would change in requirement 1 above if
the full goodwill method were used. The fair value of the non-
controlling interest at 1 Jan 2008 was $12 900.