Assignment Instructions: This assignment relates to Topic 6 on Investment in Subsidiary and requires the following to be submitted: An excel workbook with the following six (6) sheets: · Sheet 1:...

Background Information
        Student ID    Version
    Input student ID     218316105    2
                On    1/07/2016    Covette Ltd acquired:    100%
                        of the issued shares of Prestige Ltd for:    $1,748,000
                        At the date of acquisition, the Owners’ Equity of Prestige Ltd consisted of:
                        Share capital    $786,600
                        Plant replacement reserve    $196,700
                        Retained earnings    $147,420
                            $1,130,720
                As at    30/06/2019    The accounts of the two companies appear as follows:
                            Covette Ltd    Prestige Ltd
                            $    $
                        Sales    2,797,000    1,409,400
                        less Cost of Goods Sold    1,678,200    916,100
                         Depreciation expense    139,800    70,400
                         Interest expense    111,800    39,300
                         Other expenses    279,900    48,100
                        Other Income
                        plus Interest revenue    58,900    0
                         Dividend revenue    152,900    0
                        less Income tax expense    239,700    100,600
                        Net Profit after Tax    559,400    234,900
                        ERROR:#VALUE!    839,000    245,700
                        Available for appropriation    1,398,400    480,600
                        Interim dividend paid    131,100    65,500
                        Final dividend declared    218,500    87,400
                        Retained earnings (30/06/2019)    1,048,800    327,700
                        Share Capital    2,272,400    786,600
                        Plant replacement reserve    174,800    196,700
                        Total Owner's Equity    3,496,000    1,311,000
                        ERROR:#VALUE!    0    262,000
                        Dividend payable    218,500    87,400
                        Deferred Tax Liability    262,200    21,800
                        Other liabilities    393,300    65,800
                        Total Liabilities    874,000    437,000
                        Total Liabilities & Owner's Equity    4,370,000    1,748,000
                        Assets
                        Dividend receivable    87,400    0
                        Inventory    611,800    104,800
                        Property, Plant & Equipment    1,179,900    699,200
                        Accumulated depreciation    -472,000    -139,900
                        Land    742,900    699,200
                        Investment in Prestige Ltd    1,748,000    0
                        Loan receivable    262,000    0
                        Other assets    210,000    384,700
                        Total Assets    4,370,000    1,748,000
                        Additional information:
                        a) At date of acquisition, all identifiable net assets of Prestige Ltd were recorded at fair value, with the exception of a block of land in the books of Prestige Ltd.
                        The block of land had a carrying value of:    $699,200
                        and a fair value of:    $970,000
                        b) The directors apply the impairment test for goodwill annually.
                As at    30/06/2019
                        The cumulative goodwill impairment write-downs for prior years totalled:    $342,000
                On    1/07/2017    c) An equipment owned by Prestige Ltd was sold to Covette Ltd.
                        Cost of the equipment was:    $312,000
                        Accumulated depreciation of the equipment was:    $111,000
                        The asset was sold for:    $279,000
                        Covette Ltd estimated this item had a remaining useful life of:    5    years
                        and residual value of:    $0
                        d) The opening inventory of Covette Ltd includes unrealised profit of:    $183,000
                        on inventory transferred from Prestige Ltd during the prior financial year.
                By    30/06/2019    All of this inventory was sold by Covette Ltd to parties external to the Group.
                        e) During the current year, Covette Ltd purchased inventory from Prestige Ltd for:     $795,000
                        This inventory had previously cost Prestige Ltd:    $318,000
                        Percentage of this inventory sold to outsiders by Covette Ltd during the year was:    60%
                        f) Prestige Ltd borrowed a loan from Covette Ltd amounting...