Acquisiton of Subsidiary by Parent

Acquisiton date of Subsidiary by the Parent                                     1/07/2018

% ownership of Parent in Subsidiary                                                 80

Subsidiary Share Capital at acquisition date                                     $1,500,000

Subsidiary Retained Earnings at acquisition date                             $300,500

Fair value adjustment at acquisition date

At acquisiton date, the fair value of Plant Touch-U in Subsidiary is  $1,600.00

Cost of Plant Touch-U  is                                                                         $1,300.00

At acquisition date, accumulated Depreciation of Plant Touch-U $900

At acquision date, the remaining useful life in years of Plant Touch U 4

Intra-group service  transaction

Subsidiary pays management fees to Parent during the financial year. This item is included in 'other' income and expenses 5500

"Intra-group inventory transaction: 

Parent sell inventory (Type-High) to subsidiary in current period"

During the current financial year Parent Ltd sold inventory to Subsidiary Ltd at a price of $26,000

The inventory cost Parent to produce                                                                                         $18,000

% of this inventory is still on hand with Subsidiary Ltd at the end of the financial year. 40

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