Question: South Ltd acquired 100 of the voting shares of North

South Ltd. acquired 100% of the voting shares of North Ltd. In exchange, South Ltd. issued 50,000 common shares, with a market value of $ 10 per share, to the common shareholders of North Ltd. Both companies have a December 31 year- end, and this transaction occurred on December 31, 20X6. The outstanding preferred shares of North Ltd. did not change hands. The call price of the North Ltd. preferred shares is equal to their carrying value.
Following are the statements of financial position of the two companies at December 31, 20X6, before the transactions took place:

Prepare the consolidated SFP for the date of acquisition, December 31, 20X6, under the acquisitionmethod.
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  • CreatedMarch 13, 2015
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