Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2021. At this date the financial position of Matt Ltd was as follows:
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Provisions of Employee benefits
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Additional information:
The assets of Mel Ltd did not include a patent that was valued by Robert Ltd at $12 000. Its useful life was considered to be5 years, with benefits being received equally over that period.
The plant was considered to have a further 10-year life and is depreciated on a straight-line basis.
All the pre-acquisition inventories were not sold by 30 June 2019.
An interim dividend of $10,000 paid by Mel Ltd in September 2020.
Syd Ltd declared a final dividend of $20 000 in June 2020.
In exchange for the shares in Mel Ltd, Syd Ltd gave the following consideration:
• 80 000 shares in Robert Ltd, each share having a fair value of $3.50 per share
• cash of $44 000
• Artwork having a fair value of $35 000.
Robert Ltd incurred legal and accounting costs of $4 500 and share issue costs of $3 000.
The tax rate is 30%.
1. Prepare the consolidation worksheet entries for consolidated financial statements prepared by Syd Ltd at30 June 2021.