corporate accounting and reporting

i have to say what are the stepts to solve] 1. calculate acquisition analysis 2. prepare journal enteries BCVR entrie, pre aquisition equity entrie, intra group entries

CORPORATE ACCOUNTING AND
REPORTING

Acquisition analysis
At 1 July 2016:
Net fair value of identifiable assets
and liabilities acquired = $120 000 + $25 000 + $55 000 (equity)
+$30 000 (1-30%) (Land)
+$7 600 (1-30%) (Inventories)
+$4 000 (1-30%) (Machinery)
+$6 000 (1-30%) (Vehicles)
= $247 600
Consideration transferred = $276 600
Goodwill = $29 000
Worksheet entries at 1 July 2016:
Business combination valuation entries:
Inventory Dr. 7 600
Deferred tax liability Cr. 2 280
Business combination valuation reserve Cr. 5 320
Accumulated depreciation – Machinery Dr. 52 000
Machinery Cr. 41 250
Deferred tax liability Cr. 1 200
Business combination valuation reserve Cr. 9 550
Accumulated depreciation – Vehicles Dr. 47 000
Vehicles Cr. 37 333
Deferred tax liability Cr. 1 800
Business combination valuation reserve Cr. 7 867
Goodwill Dr. 29 000
Business combination valuation reserve Cr. 29 000
Pre-acquisition entries:
Retained earnings (1/7/16) Dr. 55 000
Share capital Dr. 120 000
Business combination valuation reserve Dr. 51 737
Shares in Wallaby Ltd. Cr. 226 737
Worksheet entries at 30 June 2019:
Business combination valuation entries:

Cost of sales Dr. 7 600
Income tax expense Cr. 2 280
Transfer from business combination valuation
Reserve Cr. 5 320
Accumulated depreciation – Machinery Dr. 52 000
Machinery Cr. 41 250
Deferred tax liability Cr. 1 200
Business combination valuation reserve Cr. 9 550
Depreciation expense Dr. 1 344
Accumulated depreciation Cr. 1 344
(12.5% of $10 750)
Deferred tax liability Dr. 403
Income tax expense Cr. 403
(30% of $1344)
Goodwill Dr. 29000
Business combination valuation reserve Cr. 29 000
Impairment loss - goodwill Dr. 2 000
Accum. Impairment losses – goodwill Cr. 2000
Dividend paid Dr. 20 000
General reserve Cr. 20 000
Pre- acquisition entries:
Retained earnings (1/7/16) Dr. 55 000
Share capital Dr. 120 000
Business combination valuation reserve Dr. 51 737
Shares in Wallaby Ltd. Cr. 226 737
Dividend paid Dr. 20 000
General reserve Cr. 20 000
Transfer from business comb. valuation reserve Dr 5 320
Business combination valuation reserve Cr 5 320
The transfer from BCVR to retained earnings occurs when a fair valued asset is sold in the
current period:
Inventory sold $7 600 x (1-30%) = $5 320