This assignment provides a comprehensive analysis of the acquisition of Davis Ltd. It includes detailed calculations of net fair value, goodwill, and pre-acquisition entries. The solution presents journal entries for the acquisition, including adjustments for asset revaluation, non-controlling interest (NCI), and consolidation worksheet entries. The assignment also discusses the impact of using the full goodwill method versus the partial goodwill method, referencing Australian Accounting Standards Board 3 Business Combinations. The solution incorporates accounting standards, and relevant explanations. It covers the treatment of land, inventories, and depreciation, as well as the recording of profit and loss adjustments. The assignment is a practical application of corporate accounting principles related to business combinations.