A&C purchased 80% of the voting capital of Steve Co on 1 July 20X8. The consideration...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A&C purchased 80% of the voting capital of Steve Co on 1 July 20X8. The consideration consider of cash of $12 per share and the issue of one new share in A&C for every four acquired in Steve. A&C's shares have a fair value of $3.5 and a nominal value of $1.00. The fair value of the non controlling interest at the acquisition date was $25,000 The statements of financial position as at 1 July 20X8 were follows: A&C $'000 200 65 79 18 362 50 25 106 108 62 120 362 PPE Inventory Receivable Cash Share capital ($1 shares) Share premium Retained earning Payables Bank loan Steve $'000 125 55 48 2 230 10 8 75 93 52 85 230 abilition were equal to their fair value with the expection of The carrying amounts of all assets at liabilities were equal to their fair value with the expection of land included in the property, plant and equipment balance which had a carrying value of $50,000 and a fair value of $75,000 at the acquisition date. Included in the receivables of A&C and payables of Steve is $20,000 from intercompany sales and purchases. The inventory of Steve includes $10,000 of goods purchased from A&C at mark up 25% Requirement 1: Complete the calculation for goodwill on acquisition $ Consideration Non-controlling interest Net assets acquisition Cash Share Share capital Share premium Retained earnings 101 Neo Nhu Vĩnh PhD, FCCA, CPA, SIRM – 0978846788 – ngovinhacca Semail con Goodwill Requirement 2: Using the above information as well as the information previously provided, prepare the following extracts from the consolidated statement of financial position for A&C Co group as at 31 December 20X8: PPE Inventory Receivable Payables $'000 A&C purchased 80% of the voting capital of Steve Co on 1 July 20X8. The consideration consider of cash of $12 per share and the issue of one new share in A&C for every four acquired in Steve. A&C's shares have a fair value of $3.5 and a nominal value of $1.00. The fair value of the non controlling interest at the acquisition date was $25,000 The statements of financial position as at 1 July 20X8 were follows: A&C $'000 200 65 79 18 362 50 25 106 108 62 120 362 PPE Inventory Receivable Cash Share capital ($1 shares) Share premium Retained earning Payables Bank loan Steve $'000 125 55 48 2 230 10 8 75 93 52 85 230 abilition were equal to their fair value with the expection of The carrying amounts of all assets at liabilities were equal to their fair value with the expection of land included in the property, plant and equipment balance which had a carrying value of $50,000 and a fair value of $75,000 at the acquisition date. Included in the receivables of A&C and payables of Steve is $20,000 from intercompany sales and purchases. The inventory of Steve includes $10,000 of goods purchased from A&C at mark up 25% Requirement 1: Complete the calculation for goodwill on acquisition $ Consideration Non-controlling interest Net assets acquisition Cash Share Share capital Share premium Retained earnings 101 Neo Nhu Vĩnh PhD, FCCA, CPA, SIRM – 0978846788 – ngovinhacca Semail con Goodwill Requirement 2: Using the above information as well as the information previously provided, prepare the following extracts from the consolidated statement of financial position for A&C Co group as at 31 December 20X8: PPE Inventory Receivable Payables $'000
Expert Answer:
Answer rating: 100% (QA)
Calculation of Goodwill on Acquisition Consideration Transferred Cash 12 per share ... View the full answer
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date:
Students also viewed these accounting questions
-
Let R be the region bounded above by the graph of the function f(x) = x + 4, below by the x-axis, and on the left and right by the lines. x = 0 and x = 4. Using cylindrical shells, determine the...
-
On June 30, 2011, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to...
-
Prepare the journal entries for Passport Merchandising, assuming that Passport Merchandising uses a perpetual inventory system. Passport Merchandising charges GST on all its sales at the rate of 5...
-
Write a program that uses a bar chart to display the percentages of the overall grade represented by projects, quizzes, midterm exams, and the final exam, as shown in Figure 14.46b. Suppose that...
-
An auditor expects no errors in an audit population but is concerned about potential monetary overstatement and, therefore, elects to use probability-proportional-to-size sampling. Recorded book...
-
Unused capacity, activity-based costing, activity-based management. Nivags Netballs is a manufacturer of high quality basketballs and volleyballs. Setup costs are driven by the number of batches....
-
Sheridan Company is considering a long-term investment project called ZIP. ZIP will require an investment of $117,200. It will have a useful life of 4 years and no salvage value. Annual revenues...
-
Acme Manufacturing currently employs 13 people in its receiving department. Each receiving dock clerk earns $50,000 per year. Each employee can unload up to 200 pallets of inventory per day. It...
-
-:- If no 1 then sum of positive integers less relatively prime to n is n p(n)... than n and rela
-
A part flux of a river at initially 17 C is used to cool down an otherwise adiabatic condenser at a working 100 kg at isobaric conditions. The temperature of 60 C, completely condensing saturated...
-
Please describe the operations required to make two parts (Materials: Mild steel) shown below. - Look at the overall size and shape of the part, suggest the stock size. Drawing machining diagram...
-
ASB.com has a total market value of $ 5 2 4 million. The market value of equity if $ 3 0 0 million and the company carries debt valued at $ 2 2 4 million. The before - tax cost of debt is 9 % and the...
-
For the beam that is subjected to a distributed loading as shown in Fig.1, determine the deflection of the beam at midpoint and stresses of the elements, a) Using 2 and 4 elements in FEA with hand...
-
Lockheed Tristar is the world's leading Aerospace company. It is (3. considering building a new plant to manufacture its latest F35- Lightning III aircraft in Western Texas in the USA. Defense...
-
The elected officials in a west coast university town are concerned about the "exploitative" rents being charged to college students. The town council is contemplating the imposition of a R350 per...
-
In Problem use absolute value on a graphing calculator to find the area between the curve and the x axis over the given interval. Find answers to two decimal places. y = x 3 ln x; 0.1 x 3.1
-
LMN trades in motor vehicles which are manufactured and supplied by their manufacturer, UK. Trading between the two entities is subject to a contractual agreement, the principal terms of which are as...
-
Explain the principles of economic income, carefully distinguishing income ex ante and income ex post.
-
On 1 November 2003, DX invested in 100% of the share capital of EY, a new entity incorporated on that date. EY's operations are located in a foreign country where the currency is the Franc. DX has no...
-
A container of an organic liquid a $25^{\circ} \mathrm{C}$ has a mass of $1100 \mathrm{~kg}$ and a volume of $0.94 \mathrm{~m}^{3}$. Find the liquid's weight, its density, and its specific gravity.
-
A vertical, cylindrical tank with a diameter of $10 \mathrm{~m}$ and a depth of $4 \mathrm{~m}$ is filled to the top with water at $25^{\circ} \mathrm{C}$. If the water is heated to $60^{\circ}...
-
The system in Figure P1.6 is at $20^{\circ} \mathrm{C}$. If atmospheric pressure is $101.3 \mathrm{kPa}$ and the absolute pressure at the bottom of the tank is $264.1 \mathrm{kPa}$, what is the...
Study smarter with the SolutionInn App