On $30$ June $2023,$ Lucky Ltd$.$ paid $$450,000$ to buy all the shares of Ben Ltd$.$ On this date, Ben Ltd$.$ reported the following balances.

Share capital $$250,000$ Retained earnings $$130,000$ General Reserve $$45,000$

On the date of acquisition, all the assets and liabilities of Ben Ltd$.$ were at fair value, except:

Land was recorded at a cost of $$130,000$ but had a fair value of $$180,000$

Ben Ltd$.$ had recorded $$50,000$ as an expense for in$-$process research and development. However, Lucky Ltd$.$ considered that this research and development was now an asset with a fair value of $$11,000.$ Ben Ltd$.$ considered that the fair value should be $$18,000.$

Required:

a$)$ Prepare the acquisition analysis on $30$ June $2023.$

b$)$ Prepare all the relevant journal entries required for the consolidation worksheet on $30$ June $2023.$

  

Answer rating: 100% (QA)

ANSWER a Acquisition Analysis on June 30 2023 Consideration transferred Cash paid to acquire all sha... View the full answer