(Solved): Consolidated Financial Statements In the past Parent Ltd acquired 20\% of the shares of Son Ltd for ...

Consolidated Financial Statements In the past Parent Ltd acquired 20\% of the shares of Son Ltd for \( \$ 130,000 \). These were classified as a financial investment. At 31 December 2019 these were recorded at a fair value of \( \$ 265,200 \). On 1 January 2020 Parent Ltd acquired the remaining 80\% of the equity capital of Son Ltd at a cost of \( \$ 1,060,800 \). At acquisition date all identifiable assets and liabilities of Son Ltd were at fair value, and the total equity of Son Ltd consisted of: Share capital (50,000 shares) \$650,000 Retained earnings \$390,000 Total \$1,040,000 All identifiable assets and liabilities of Son Ltd were recorded at amount equal to fair value except as follows: The plant is expected to have a further useful life of five years. All the inventory on hand at 1 January 2020 was sold by 31 December 2020. The income tax rate is \( 30 \% \) The information obtained from Parent Ltd and Son Ltd at 31 December 2021 were as follows a. Prepare acquisition analysis and determine goodwill. b. Prepare consolidation worksheet entries as of 1 January 2020. c. Prepare consolidation worksheet entries as of 31 December 2021. d. IFRS 3 (paragraph 19) prescribes two methods to measure non-controlling interest (NCI). What are these methods and