Reference no: EM132545644

Question - Alma Ltd acquired all the issued shares of Davvis Ltd on July 2018 for $632,222. At this date Davis Ltd recorded a dividend payable of$13000 and equity of the following:

Share Capital: 221,000 General Reserve: 95,000 Asset revaluation Surpluss: 76,000.

All the identifiable assets and liabilities were recorded at amounts equal to their fair values at acquisition date except for the following:

Inventories: 95,000 (Carrying amount) and 171,000 (Fair Value).

Land: 190,000 (Carrying amount) and 342,000 (Fair Value).

Machinery: 265,000 (Cost); 221,000 (Carrying amount); 398,000(Fair Value) and 10 years of further life-in.

Of the inventory, 94% was sold by 30 June 2019.The remainder was sold by 30 June 2020.

In May 2019 Davis Ltd transferred 38,000 from the Asset revaluation surpluss at 1 July 2018 to a general reserve.

Tax rate is 30%

1) Prepare the acquisition analysis at 1 July 2018.

2) Prepare the consolidation worksheet entries for Alma Ltd´s group at 30 June 2019. (Including supporting calculations).