Ben Ltd operates a number of supermarkets with an emphasis on the supply of quality produce The operations of Sam Ltd are primarily in the fine fruit...

Ben Ltd operates a number of supermarkets with an emphasis on the supply of quality produce

The operations of Sam Ltd are primarily in the fine fruit market. Believing that the acquisition of Sam Ltd would enable Ben Ltd to expand its supply of quality produce to its customers, Ben Ltd commenced actions to acquire the shares of Sam Ltd. On 1 July 2013, Ben Ltd acquired all the issued shares (cum div.) of Sam Ltd for $130 000. At this date the equity of Sam Ltd consisted of:

                       Share capital                          $150 000

                       Reserves                                 10 000

                       Retained earnings                   30 000

On 1 July 2013, Sam Ltd had recorded a dividend payable of $6000 and goodwill of $5000

(net of accumulated impairment losses of $7000). The dividend was paid in August 2013. In the

previous year's annual report Sam Ltd had reported the existence of a contingent liability for

damages based upon a lawsuit by a customer who had slipped on some fallen fruit in one of the

Stores operated by Sam Ltd. Ron Ltd calculated that this liability had a fair value of $9 000.

Sam Ltd also had some customer databases that were not recorded as assets but Ron Ltd placed

affair value of $6000 on these items. Sam Ltd believed that the databases had a future life of

4 years.

 All of the identifiable assets and liabilities of Sam Ltd were recorded at amounts equal to their

fair values except for the following:

                                                                       Carrying amount       Fair value

                       Plant (cost $120 000)             $94 000                     $96 000

                       Land                                       80 000                        95 000

                       Inventory                               20 000                        26 000

  The plant had an expected remaining useful life of 5 years. The land was sold by Sam Ltd in

February 2015. All inventories were sold by 30 June 2014.

  In February 2016, Sam Ltd transferred $3000 of the reserves on hand at 1 July 2013 to retained earnings. The remaining $2000 was transferred in February 2017.

  The court case involving the damages sought by the customer was settled in May 2017.

Sam Ltd was required to pay $7 000 to the customer.

Required

Prepare the consolidation worksheet entries for the preparation by Sam Ltd of its consolidated

financial statements at 30 June 2017.