The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On 31 December 20X6, Dali gaincdcontrol of Drysdale by purchasing all its share capital for $250000. The purchase was based on the following fair values forDrysdale assets, which differ from their carrying amounts:Accounts receivable21 400Inventory31000Patents (not recorded by Drysdale)15000Equipment assets170000Financial statements of the three companics at the control date are shown in the workshecet below. At this date:• Gleeson has made a $400 payment to Dali, which has not yet reccived it.• Dali has shipped inventory goods to Gleeson invoiced at $900. Drysdale has not yet recived these goods or recordedthem, but they have been included in the above fair value measure of the inventory.Drysdale applies the cost model to equipment.(e) Complete the worksheet below up to the sum column.(b) Prepare data adjustments in alternative general journal form with appropriate commentaries.Consolidation worksheet at 31 December 20X6: Balance sheet (data preparation)Data adjustmentsDaliGleesonDrysdaleSumDrCrPaid-up capital545 000150000175 000Asset revaluation reserve150 00025 000Other reserves600005 000Retained profits400001900010000Owners' equity795 000194 000190 000Accounts payable75 00040 50060 000Estimated uncollectible debts15 0002 500800Accumulated depreciation-equipment100 00038 00033 000Total equities and asset contras985 000275000283 800Cash50003500025 500Accounts receivable150 00025 00024 300Inventory6000055 00035 000Investment in subsidiaries650000Patents160 000275 000Equipment120000199000Total assets985 000283 800

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The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On 31 December 20X6, Dali gained control of Drysdale by purchasing all its share capital for $250000. The purchase was based on the following fair values for Drysdale assebs, which differ from their carrying amounts:

The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On 31 December 20X6, Dali gained control of Drysdale by purchasing all its share capital for $250000. The purchase was based on the following fair values for Drysdale assebs, which differ from their carrying amounts:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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