Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400  000 General reserve 88  000 Retained earnings 90  000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required: Prepare the consolidation worksheet entries for Dwani Ltd’s group on 30 June 2022 assuming the consideration transferred was $500 000.

Odom Ltd purchased a 30% shareholding in Bryant Ltd on 1 Jan 20X7 for $60 000. This purchase resulted in Odom Ltd having significant influence over Bryant Ltd. Bryant's assets were recorded at fair values and its owners' equity, totalling $180 000, was: Share capital $80 000 Reserves $60 000 Retained profits $40 000 During 20X7 Bryant Ltd reported profit of $100 000, from which a dividend of $60 000 was paid. Also, during the year, Bryant revalued its assets upwards by $50 000, and sold inventories to Willams Ltd which is the subsidiary of Odom. Bryant made a profit of $4,000. Half of the inventories were still held by Willams by the year-end. Odom Ltd has an 80% equity interest in Willams Ltd. Required: Prepare journal entries for Odom Ltd to account for its investment in Bryant Ltd using the Equity Method. Use the Reclassification Method to account for the profit and dividends that Odom shares from Bryant. (Using the provided journal entry template to enter your answer;…

Meldrum Pty Limited (a private company) had the following transactions in relation to its franking account: DateDetailsAmount1 July 2018Opening balance$2,0006 Sept 2018Received a fully franked dividend from BHP Limited$49,0007 Sept 2018Paid Goods and Service Tax$25,0009 Sept 2018Paid a dividend franked to 50%$56,0002 Oct 2018Paid income tax instalment$6,00011 Nov 2018Received a refund of income tax$49,0007 Feb 2019Paid income tax instalment$5,00014 Mar 2019Paid a dividend fully franked$56,0008 April 2019Paid income tax instalment$6,0003 May 2019Paid fringe benefits tax$50,00015 June 2019Paid a dividend 30% franked$42,000Required: (a)What is the closing balance of the franking account on 30 June 2019? (b)What are the consequences of the closing balance of the franking account? (c)What other tax consequences are there for Meldrum Pty Ltd?   3 / 3 125%

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On 1 July 2013 Donald Ltd acquired all of the share capital (cum div) of Duck Limited for a consideration of $600,000 cash and a brand that was held in their accounts at a fair value of $50,000. Duck Ltd reported a dividend payable of $8,000 at 1 July 2013. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of:   The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $18,000.The land was sold on 30/12/16 for $90,000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of Duck Ltd consisted of: Share capital 420000 General reserve 90000 Retained earnings 70000 Assume a tax rate of 30%. Required A. Prepare the acquisition analysis at 1 July 2013.B. Prepare the BCVR and pre-acquisition journal entries at 1 July 2013.C. Prepare the BCVR and pre-acquisition journal entries at 30 June 2017. Answer all the subparts A,B,C .if…

On 30 June 2017, P Co pays £50,000 cash to acquire 70% of the ordinary shares of S Co. The draft statements of financial position of these two companies as at 30 June 2018 are below: Assets P Co £ S Co £         Property, plant and equipment 400,000 55,000   Investment in S 50,000     Total Non-current Assets 450,000 55,000   Receivables 50,000 5,000   Inventories 50,000 5,000   Bank and Cash 250,000 15,000   Current Assets 350,000 25,000   Total Assets 800,000 80,000   Equity       Ordinary Share Capital (£1 shares) 500,000 50,000   Retained Earnings 200,000 10,000   Liabilities 700,000 60,000         Trade Payables 100,000 20,000   Total Equity and Liabilities 800,000 80,000     The following information is also available: The fair value of the property, plant and equipment of S Co on 30 June 2018is £60,000 as…