i don t know how to do the consolidation statements especially how we can get the co 708912

ADVANCED FINANCIAL ACCOUNTING 260 ASSIGNMENT – SEMESTER 2, 2014 CONSOLIDATED FINANCIAL STATEMENTS On 1 July 2011, Kookaburra Ltd acquired all the shares of Magpie Ltd on a cum div basis. At this date, the equity and liability sections of Magpie Ltd.’s statement of financial position showed the following balances: Share Capital (60 000 shares) $60 000 General Reserve $30 000 Retained Earnings $21 000 Option Reserve $6 000 Dividend payable $5 000 The dividend payable at acquisition date was subsequently paid in September 2011. At acquisition date, all the identifiable assets and liabilities of Magpie Ltd were recorded at amounts equal to fair value except for: Carrying Fair Amount Value Inventory $50 000 $56 000 Machinery (cost $17 000) 15 000 16 000 Equipment (cost $30 000) 24 000 32 000 Land 18 480 24 480 Manufacturing Software (cost $36 000) 28 800 31 800 The manufacturing software is a custom designed programme used by Magpie Ltd to run its robotic manufacturing plant. It has a remaining useful life of four years. Additionally, Magpie Ltd owns, but has not recognised, the internally generated brand name “Handytrax”. The fair value of the brand, which is regarded as having an indefinite life, is $30 000 at 1 July 2011. The inventory on hand in Magpie Ltd at 1 July 2011 was sold during the following 12 months. The machinery, which had a further five year life on acquisition date, was sold on 1 January 2014. The land on hand at acquisition date was sold on 1 August 2013. The equipment was estimated to have a further 8 year life. At 1 July 2011, Magpie Ltd had not recorded any goodwill. On 30 June 2013, half of the goodwill acquired was written off as a result of an impairment test. Any adjustments for differences between carrying amounts at acquisition date and fair values are made on consolidation. Any valuation reserves created are transferred on consolidation to retained earnings when assets are sold, fully consumed or completely…