On January 1, 2013, Sculptor Ltd. acquired all the share capital (cum div.) of Virgo Ltd., giving in exchange 50,000 shares in Sculptor, with a fair value at acquisition date of $5 per share. The retained earnings of Virgo at that date were $50,000. Costs incurred in undertaking the acquisition amounted to $10,000. The dividend payable at the acquisition date was paid in February 2013. At December 31, 2013, the statement of financial position of Virgo was as follows:
The recorded amounts of Virgo’s identifiable assets and liabilities at the acquisition date were equal to their fair values. Virgo had not recorded an internally developed trademark. Sculptor valued this at $20,000. It was assumed to have a four-year life.
The tax rate is 30%.
Prepare the consolidated statement of financial position as at December 31, 2013.

  • CreatedJune 09, 2015
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