Alice Ltd acquired all the issued shares of Springs Ltd for $521 760 cash on 1 July 2019…. 1 answer below »

Alice Ltd acquired all the issued shares of Springs Ltd for $521 760 cash on 1 July 2019. At this date, the information below was provided: ? Springs Ltd’s equity comprised of Share Capital, Retained earnings and General Reserve with the following account balances: Share Capital $161 700 Retained Earnings 151 200 General Reserve 72 000 • Springs Ltd had recorded Goodwill of $5 760 (see Goodwill account in Consolidation Worksheet Template). • Al the identifiable assets and liabilities of Springs Ltd were recorded at fair value equal to their carrying amounts except Buildings that were considered to have a further 5-year useful life. Carrying amount ($) Fair value ($) Buildings (Cost $352 800) 175 200 199 200 Other information included: 1) Goodwill: Goodwill relating to the acquisition of Springs Ltd was impaired by $8 640 during the year ended 30 June 2020. 2) Inventories: On 1 April 2020, Springs Ltd sold some inventories to Alice Ltd for $226 800. These inventories had originally cost Springs Ltd $189 000. At 30 June 2020, 50% of these inventories had been sold by Alice Ltd externally. Both companies used the perpetual method to account for inventory transactions. 3) Plant: On 1 July 2019, Alice Ltd sold an item of plant to Springs Ltd for $126 000. At this time, the carrying amount of the plant was $96 000. Springs Ltd depreciated the plant at 20% per annum on cost. 4) Dividends: Dividends of $16 320 were p


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