Exploring Financial Consolidation: Jonathan Ltd and Thomas Ltd

Step 1: Calculate Acquisition Analysis (1 July 2020)

Acquisition consideration: $246,000

Equity acquired: $130,000 (Share capital) + $50,000 (General reserve) + $40,500 (Retained earnings) = $220,500

Net identifiable assets and liabilities:

Plant (Fair value - Carrying amount): $10,000

Land (Fair value - Carrying amount): $20,000

Inventories (Fair value - Carrying amount): $8,000

Unrecorded assets/liabilities:

Brands: $12,000

Contingent liability: $15,000

Goodwill calculation:

Account for unrecorded items and calculate excess of fair value over consideration.

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