Solution for QID #18603: The following three entities make up an economic group as fo | StudyHelpMe

The following three entities make up an economic group as follows: Apple Ltd purchased 60% of the shares totalling $65,000 in Banana Ltd and Banana Ltd wholly owns Cherry Ltd which was purchased for $52,000. Both investments were acquired on 1 July 2018. On this date, shareholders' equity was valued at: Banana Ltd Cherry Ltd Share capital 75,000 20,000 General reserve 10,000 1,000 Retained earnings 16,000 4,500 The financial statements of the entities within the group at 30 June 2020 are as follows: Apple Ltd: Total assets 295,000 Total liabilities 126,000 Share capital 100,000 General reserve 30,000 Retained earnings 39,000   Banana Ltd: Debentures in Cherry Ltd 20,000 Total assets 147,000 Total liabilities 17,750 Share capital 75,000 General reserve 16,250 Retained earnings 38,000   Cherry Ltd: Total assets 66,500 Debentures 25,000 Total liabilities 30,250 Share capital 20,000 General reserve 2,250 Retained earnings 14,000   The tax rate is 30%. All non-controlling interest are valued at the proportionate share of the acquiree's identifiable net assets. Inventory on hand at 30 June 2020 included goods obtained from within the group as follows: -Apple Ltd purchased from Banana Ltd, sale price was $10,000 and cost $7,500. -Apple Ltd purchased from Cherry Ltd, sale price was $20,000 and cost $18,500. -Banana Ltd purchased from Cherry Ltd, sale price was $15,000 and cost $13,800. The directors had applied the impairment test for goodwill annually and determined that a write-down of $3,090 is required for consolidation purposes at 30 June 2020 (write-down of goodwill in Banana Ltd is $440 and write-down of goodwill in Cherry Ltd is $2,650) with the same amounts deemed to be attributable for the prior period. All debentures (including the debenture from Cherry Ltd to Banana Ltd) is due 30 June 2030. Required:In the space provided - show goodwill entries, intragroup transactions and calculate direct and indirect non-controlling interest.