Below are the statements of financial position of P Ltd and S Ltd as at 31...
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Below are the statements of financial position of P Ltd and S Ltd as at 31 December 2010: OP Ltd bought 80% shares in S Ltd in 2010 S Ltd purchases all its inventory from P Ltd at a gross profit percentage of 20%. Inventory purchased from P Ltd still on hand at year end was as follows: 31 March 2020 $ 30,000. Total sales of P Ltd to S Ltd for the year ended 31 March 2020 amounted to $80,000 Assets Current Assets Investment in S Account Receivable Fixed Asset Liabilities Long Term Loan double Equity Share Capital Retaines Earnings Required: P 150 200 100 300 100 50 600 S 125 280 100 50 80 375 Calculate the goodwill based on the given information. 2. Calculate the unrealized profit on the transaction at the end of the year 3. Prepare elimination entry(ies) based on the given information Below are the statements of financial position of P Ltd and S Ltd as at 31 December 2010: OP Ltd bought 80% shares in S Ltd in 2010 S Ltd purchases all its inventory from P Ltd at a gross profit percentage of 20%. Inventory purchased from P Ltd still on hand at year end was as follows: 31 March 2020 $ 30,000. Total sales of P Ltd to S Ltd for the year ended 31 March 2020 amounted to $80,000 Assets Current Assets Investment in S Account Receivable Fixed Asset Liabilities Long Term Loan double Equity Share Capital Retaines Earnings Required: P 150 200 100 300 100 50 600 S 125 280 100 50 80 375 Calculate the goodwill based on the given information. 2. Calculate the unrealized profit on the transaction at the end of the year 3. Prepare elimination entry(ies) based on the given information
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1 Calculate the goodwill based on the given information Identifiable net assets of S Ltd Total Asset... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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