Reference no: EM132659991

Michael Ltd acquires all the issued capital of Petersen Ltd for a cash payment of $600 000 on 30 June 2019. The statements of financial position of both entities immediately following the purchase are:

                                          Michael Ltd($000)                    PetersenLtd($000)

Current assets

Cash                                   10                                 5
Accounts receivable              150                                55

Non-current assets
Plant.                                       700                                500
Land                                   200                                       100
Investment in Petersen Ltd            600                                    -
                                                1 660                                660

Current liabilities
Accounts payable.                           60                                30

Non-current liabilities
Loans.                                          400                                150
Shareholders' equity
Share capital.                              1 000.                                200
Retained earnings.                            200.                               280
                                                     1 660                              660
Additional information

• All assets of Petersen appearing in the 30 June 2019 statement of financial position are fairly valued.

At 30 June 2019 Petersen had two internally developed identifiable intangible assets with the following fair values:

Fair value ($000)
Patent 100
Publishing Title 25

REQUIRED

Problem 1: Provide the consolidated statement of financial position for Michael Ltd and Petersen Ltd as at 30 June 2019