write my assignment 19047

A contingent liability relating to an unsettled legal claim with a fair value of $60,000 was recorded in the notes to the financial statements. This amount will be tax deductible when paid. The court case is still in progress at 30 June 2015.

During the year ended 30 June 2014:

On 1 July 2013 Rose Ltd sold an item of plant to Lian Ltd for $60,000. The plant had cost $64,000 when purchased on 31 December 2012. It’s expected useful life was originally 5 years and this original estimate is still considered to be valid. The plant is still an asset of Lian Ltd at 30 June 2015.

During the year Lian Ltd made sales of inventory to Rose Ltd of $62,000. The inventory balance of Rose Ltd at the end of the year included stock of $52,000 acquired from Lian Ltd.

Lian Ltd declared and paid dividends of $70,000 for the year. Rose Ltd did not declare or pay any dividends for the year.

During the year ended 30 June 2015:

On 1 November 2014 Lian Ltd sold an item of plant to Rose Ltd for $90,000 when its carrying value in Lian’s books on that date was $108,000 (original cost $180,000 and original estimated life of 5 years). The plant is still an asset of Rose Ltd at 30 June 2015.

During the year Rose Ltd made sales of inventory to Lian Ltd of $44,400. The inventory balance of Lian Ltd at the end of the year included stock of $21,200 acquired from Rose Ltd.

The management of Lian Ltd believes that the goodwill acquired on acquisition of Rose Ltd was impaired by $9,000 in the current year. This is in addition to a total of $15,000 of impairment in previous years.

Lian Ltd charged management fees to Rose Ltd.

Dividends were declared/paid by both companies.

Non-controlling interests in Rose Ltd to be recognised. This is the only subsidiary in the group.

 
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