Problem
Wallaby Ltd purchased all the shares of Koala Ltd on 31 December 20X3. Koala's assets were recorded at fair value except for the following: Land: Carrying amount $46 000 Fair value $70 000 Inventory: Carrying amount $23 000 Fair value $26 000 Vehicle: Carrying amount $78 000 Fair value $60 000 Accounts receivable: Carrying amount $27 000 Fair value $29 000 Additional information for the above assets: Koala uses the AASB 116 cost model to measure the land and vehicle but, for group/consolidation purposes, revaluation to fair value is the model applied. The fair value of the land on 31 December 20X5 was $91,000. Koala's inventory held at the control date was still in stock until 31 December 20X4. All of the list was sold to external parties in the year ended 31 December 20X5. The vehicle had a remaining useful life of 6 years at the control date. The residual value is nil. The vehicle originally cost $90,000.
Task
Prepare entries for the required consolidation data adjustments on 31 December 20X5, the year-end. Hint for adjustment related to inventory: you can show the single combined adjustment entry.