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Hi, could you please teach me how to do the question D and E?

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0n 1 July 2013 Donald Ltd acquired all of the share capital (cum div} of Duck Limited for a
consideration of $500,000 cash and a brand that was held in their accounts at a book value
of $10,000 but at 1 July 2013 had a fair value of $34,000. Duck Ltd reported a dividend
payable of $10,000 at 1 July 2013. At that date all the identifiable assets and liabilities were recorded at fair value with the
exception of: ASSET BOOK VALUE MARKET VALUE Less depreciation Accounts Receivable The inventory was all sold by 30f6j14. The remaining useful life of the plant is 5 years.
The accounts receivable were collected by 30fE/14 for $14,000. The land was sold on 30f12f16 for $32,000. The plant was on hand still at 30f6f1'1’. At the date of acquisition the equity of Duck Ltd consisted of: Share Capital 380,000 General Reserve 10,000
Retained Earnings 62,000 Information from the trial balances of Donald Ltd and Duck Ltd at 30 June 2017 is presented
overleaf on page 3.

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Additional Information
1. On 1 Jan 2017 Duck Ltd sold inventory to Donald Lid costing $60,000 for $80,000. Half of
this inventory was sold to outside parties for $30,000 by 30/6/17.
2. On 1 Jan 2016 Duck Ltd sold inventory costing $9000 to Donald Ltd for $12,000. Donald
Ltd treats the item as equipment and depreciates it at 10% per annum.
3. On 1 July 2016 Duck sold plant to Donald for $12,000. The plant had cost Duck $10,000 on
1 July 2014 and it was being depreciated at 10% per annum. Donald regards the plant as
inventory. The inventory was all sold by 30th July 2016.
4. At 1 July 2016 Duck Ltd held inventory that it had purchased from Donald Lid on 1 June
2016 at a profit of $7000. All inventory was sold by 30 June 2017.
5. Donald Ltd accrues dividends from Duck Ltd once they are declared.
6. Donald Ltd has earned $1200 in interest revenue in the 2017 financial year from Duck Ltd.
7. Donald Ltd has earned $4800 in service revenue in the 2017 financial year from Duck Ltd.
8. Assume a tax rate of 30%.

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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.
D. Prepare the consolidation worksheet journal entries to eliminate the effects of
Inter-entity transactions as at 30 June 2017.
E. Prepare the consolidation worksheet for the preparation of the consolidated financial
statements for the period ended 30 June 2017.
F. Prepare the consolidated statement of profit or loss and other comprehensive income,
the consolidated balance sheet and the consolidated statement of changes in equity for
the period ended 30 June 2017.
Presentation
Your work should be prepared using an Excel spreadsheet and saved as a PDF to be
submitted via LMS by the due date.

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Donald Led
Duck Ltd
DR
CR
DR
CR
Sales Revenue
1,192,500
932,500
Cost of Sales
388,000
676,000
Wages and Salaries
61,000
32,000
Depreciation Expense
5,200
4,800
Service Expense
3,500
4,800
Interest Expense
7,000
1,200
Other Expenses
4.000
6,000
Gain on Sale of Non Current Ass
7,000
Service Revenue
4,800
5,000
Interest Revenue
1,200
7,000
Dividend Revenue
16,000
Income tax expense
97,120
118,480
Retained Earnings 1/7/16
100,820
70,280
Dividend Paid
10,000
7,000
Dividend Declared
12,000
9,000
Share Capital
500,000
380,000
General Reserve
146,000
70,000
Other Equity 1/7/16
4,000
12,000
Gains on Financial Assets (OCI)
1,000
6,000
Loan Payable to Donald Ltd
16,000
Deferred Tax Liability
52,000
30,000
Dividend Payable
12,000
9,000
Shares in Duck Ltd
524,000
Cash
86,000
147,500
Inventories
169,500
36,000
Other Current Assets
11,000
300,000
Dividend Receivable
9,000
Loan receivable from Duck Ltd
16,000
Financial Assets
15,000
68,000
Plant and Equipment
52,000
28,000
Acc. Depreciation Plant
10,000
14,000
Land
70,000
120,000
2,040,320
2,040,320
1,558,780
1,558,780

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