the statement of financial position of columba ltd at december 31 2011 was as follows
The recorded amounts of Columba identifiable assets and liabilities at this date were equal to their fair values except for inventory and plant and equipment, whose fair values were $50,000 and $236,000, respectively. The plant and equipment has a further five year life. Allthe inventory was sold by Columba by December 2012. The tax rate is 40%.
On January 1, 2012, Centaurus Inc. acquired all the shares (cum div.) in Columba, giving in exchange 50,000 shares in Centaurus, with a fair value at acquisition date of $5 per share. Costs incurred by Centaurus in undertaking the acquisition amounted to $10,000. The dividend payable was paid in August 2012.
Required
Prepare the consolidation process adjustments for the preparation of consolidated financial statements at December 31, 2013.
