On 1 July 2016, Apple Ltd acquired all the issued shares of Pie Ltd for $200 000.
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Question:
On 1 July 2016, Apple Ltd acquired all the issued shares of Pie Ltd for $200 000. At this date the equity of Jeff Ltd consisted of share capital of $80 000 and retained earnings of $68 800. All the identifiable assets and liabilities of Jeff Ltd were recorded at amounts equal to fair value except for:
Carrying amount Fair value
Patent $60 000 $72 000
Plant (net of $40 000 depreciation) 40 000 48 000
Inventory 21 600 28 000
Required
Prepare the consolidation adjustments entries at 30 June 2016.
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