Topic 5 Workshop Questions.docx (Compatibility Mode] - Word Review View EndNote X8 ACROBAT Tell me what you want to do AaBbCcD AaBbCcD AaBbCclD Normal]TNo Spac Heading 1 Heading 2 Title Subtitle Subtle Em. Emphasis Paragraph Styles Question 2 On 1 July 2016, Tuff Ltd acquired all the issued shares of Dogg Ltd for $176 800. At this date the equity of Dogg Ltd consisted of share capital of $80 000 and retained earnings of $68 800. All the identifiable assets and liabilities of Dogg Ltd were recorded at amounts equal to fair value except for: Fair value $72 000 48 000 28 000 Carrying amount Patent Plant (net of $40 000 depreciation) Inventory $60 000 40000 21 600 The patent was considered to have an indefinite life. It was calculated that the plant had a further life of 10 years, and was depreciated on a straight-line basis. All the inventory was sold by 30 June 2017. In June 2017. Dogg Ltd conducted an impairment test on the patent, as it was considered to have an indefinite life, and the goodwill. As a result, the goodwill was considered to be impaired by $1200. In May 2017, Dogg Ltd transferred $20 000 from the retained earnings on hand at 1 July 2016 to a general reserve. The tax rate is 30%. Required Prepare the consolidation worksheet adjustments entries at 1 July 2016 and 30 June 2017 Topic 5 Workshop Questions.docx (Compatibility Mode] - Word Review View EndNote X8 ACROBAT Tell me what you want to do AaBbCcD AaBbCcD AaBbCclD Normal]TNo Spac Heading 1 Heading 2 Title Subtitle Subtle Em. Emphasis Paragraph Styles Question 2 On 1 July 2016, Tuff Ltd acquired all the issued shares of Dogg Ltd for $176 800. At this date the equity of Dogg Ltd consisted of share capital of $80 000 and retained earnings of $68 800. All the identifiable assets and liabilities of Dogg Ltd were recorded at amounts equal to fair value except for: Fair value $72 000 48 000 28 000 Carrying amount Patent Plant (net of $40 000 depreciation) Inventory $60 000 40000 21 600 The patent was considered to have an indefinite life. It was calculated that the plant had a further life of 10 years, and was depreciated on a straight-line basis. All the inventory was sold by 30 June 2017. In June 2017. Dogg Ltd conducted an impairment test on the patent, as it was considered to have an indefinite life, and the goodwill. As a result, the goodwill was considered to be impaired by $1200. In May 2017, Dogg Ltd transferred $20 000 from the retained earnings on hand at 1 July 2016 to a general reserve. The tax rate is 30%. Required Prepare the consolidation worksheet adjustments entries at 1 July 2016 and 30 June 2017